The inter-ministerial panel responsible for evaluating investments linked to China has not yet approved Paytm’s proposal to invest in its payment aggregator arm, according to a senior government official on Friday.
Financial Services Secretary Vivek Joshi informed that the proposal is still being reviewed by the panel, which is expected to make a decision soon.
Struggling Paytm has proposed a Rs 50 crore investment in its wholly-owned subsidiary, Paytm Payment Services Ltd (PPSL). One 97 Communications Ltd (OCL), Paytm’s parent company, has Chinese investments.
The panel, consisting of officials from the ministries of foreign affairs, home, finance, and industries, is examining whether OCL’s investment in PPSL complies with FDI guidelines. Once approved by the panel, Paytm can seek a payment aggregator licence from the RBI, Joshi added.
Following the panel’s approval, the Reserve Bank of India will review their proposal and decide on granting the licence.
Paytm Payments Services Ltd applied for a payment aggregator licence in November 2020 under the RBI’s guidelines on Regulation of Payment Aggregators and Payment Gateways. However, the RBI rejected PPSL’s application in November 2022, instructing the company to resubmit it in compliance with Press Note 3 under FDI rules.
