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Chinese Investments Under Scrutiny In Paytm Payments Services

OutlookIndia

OutlookIndia · 1y ago

Chinese Investments Under Scrutiny In Paytm Payments Services

The Indian government is investigating Chinese investments in Paytm Payments Services Ltd (PPSL), a subsidiary of One97 Communications, the parent company of Paytm. PPSL had applied for a license with the Reserve Bank of India but was rejected in 2022. The company resubmitted its application to comply with FDI guidelines. An inter-ministerial committee is examining the Chinese investments, and a decision will be made after a thorough examination. The government had made prior approval mandatory for foreign investments from countries that share a land border with India to prevent opportunistic takeovers.

Related News

Paytm's China link that made authorities sit up

Livemint

Livemint · 1y ago

Paytm's China link that made authorities sit up

The article discusses Paytm's troubles with authorities regarding Chinese investments in its subsidiaries. The Indian government rejected Paytm's proposal for post-facto approval of investments in its subsidiary, Paytm Payments Services Ltd. The external affairs ministry expressed concerns about the investments from a political perspective. The Department of Promotion of Industry and Internal Trade and Department of Financial Services also did not approve the investments. The Reserve Bank of India (RBI) imposed regulatory restrictions on Paytm Payments Bank due to non-compliance. Paytm CEO Vijay Shekhar Sharma has been informed about concerns regarding Chinese investments.

China's Ant Group to exit Paytm: Report - The Economic Times

Economic Times

Economic Times · 24d ago

China's Ant Group to exit Paytm: Report - The Economic Times

China's Ant Group plans to sell its remaining 5.84% stake in Indian fintech company Paytm via block deals valued at approximately $433.72 million. This decision comes amid growing regulatory scrutiny and geopolitical tensions, reflecting a broader trend of diminishing Chinese investments in India's digital payments industry.

Paytm Confirms Exit Of Manju Agarwal From Paytm Payments Bank’s Board

Inc42 · 1y ago

Paytm Confirms Exit Of Manju Agarwal From Paytm Payments Bank’s Board

Fintech giant Paytm has confirmed the resignation of independent director Manju Agarwal from the board of Paytm Payments Bank due to personal commitments. The departure of Agarwal and another independent director, Shinjini Kumar, comes after the Reserve Bank of India imposed fresh restrictions on the trouble payments bank. Paytm is currently under scrutiny as it seeks approval for an investment in its payments gateway arm, Paytm Payments Services, while an inter-ministerial committee examines foreign direct investment from China into the company.

India defers approval of Paytm's investment in its payments arm

Economic Times

Economic Times · 1y ago

India defers approval of Paytm's investment in its payments arm

The Indian government has postponed approval of Paytm's investment of Rs 50 crore ($6 million) in its Paytm Payment Services arm, citing concerns about Chinese shareholding in the parent company, as per government officials and a document seen by Reuters. This delay follows Paytm's scrutiny by India's banking regulator and financial crime-fighting agency over the closure of its payments bank. Paytm had sought approval for the investment, already made in its payments gateway arm, to obtain a payment aggregator license for accepting online payments. The Ministry of Home Affairs approved the investment, but the foreign ministry rejected it, leading to the deferral.

Paytm crisis: Govt panel examining Chinese FDI flow into PPSL, says report

Livemint

Livemint · 1y ago

Paytm crisis: Govt panel examining Chinese FDI flow into PPSL, says report

Paytm's application to operate as a payment aggregator was rejected by the Reserve Bank of India (RBI) in November 2022. The RBI asked the company to resubmit its application to comply with FDI guidelines under Press Note 3. Paytm's parent company, One97 Communications, has applied to the Indian Government for past downward investment from Chinese firm Ant Group to comply with FDI guidelines. An inter-ministerial committee is examining investments from China in Paytm Payments Services. The government mandates prior approval for foreign investments from countries sharing land borders with India.

Paytm Shares Hit 5% Upper Circuit After NPCI Nod For TPAP Licence

Inc42 · 1y ago

Paytm Shares Hit 5% Upper Circuit After NPCI Nod For TPAP Licence

Paytm's parent company, One97 Communications Ltd, has been granted approval by the National Payments Corporation of India (NPCI) to participate in UPI services as a Third-Party Application Provider. This allows Paytm to operate UPI services under a multi-bank model, with Axis Bank, HDFC Bank, State Bank of India, and Yes Bank acting as payment system provider banks. The approval comes as a relief for Paytm, as the company has seen a significant drop in shares and investments following regulatory actions on Paytm Payments Bank Ltd.

Paytm parent company under ED lens for ₹611 crore FEMA breach tied to subsidiary deals

Business Today

Business Today · 6m ago

Paytm parent company under ED lens for ₹611 crore FEMA breach tied to subsidiary deals

Paytm's parent company, One97 Communications, is under investigation by the Enforcement Directorate for potential FEMA violations totaling ₹611 crore, related to dealings with subsidiaries acquired in 2017. Alleged violations stem from activities between 2015 and 2019, involving Little Internet Private Limited, Nearbuy India Private Limited, and One97 Communications directly. This scrutiny comes after an RBI directive halted Paytm Payments Bank operations due to non-compliances, though Paytm services continue unaffected.

India defers approval of Paytm's investment in its payments arm, sources say

Reuters · 1y ago

India defers approval of Paytm's investment in its payments arm, sources say

Paytm's $6 million investment in its Paytm Payment Services arm has been deferred by the Indian government due to concerns about Chinese shareholding in the parent company. Paytm had sought approval for the investment it had already made in its payments gateway arm, as it needed a payment aggregator license. The Ministry of Home Affairs had approved the investment, but the foreign ministry rejected it on political grounds. The government panel responsible for approving the investment cited the entity's Chinese ownership as a concern. If the approval is withheld, Paytm may have to withdraw funds from Paytm Payment Services.

Govt defers nod for Paytm's investment in its payments arm

VCCircle

VCCircle · 1y ago

Govt defers nod for Paytm's investment in its payments arm

The Indian government has postponed its approval of Paytm's $6 million investment in its Paytm Payment Services arm. The deferment is reportedly due to concerns about a Chinese shareholding in the parent company. Paytm is already under investigation by India's banking regulator and financial crime-fighting agency after being ordered to wind down its payments bank. The government panel responsible for approving the investment includes representatives from India's home affairs, finance, and industries ministries, as well as the foreign office, which has cited "political grounds" for its rejection of the investment.

Paytm clarifies license status, says no notice on investment in payments arm

Livemint

Livemint · 1y ago

Paytm clarifies license status, says no notice on investment in payments arm

Fintech giant Paytm has denied reports that the Indian government has deferred approval for its investment in Paytm Payments Services (PPSL). Earlier, Reuters reported that the government had concerns about Chinese shareholding in Paytm's parent company, One 97 Communications. In a statement, Paytm called the report "speculative", and stated that it has consistently provided the requested information to the government. Paytm emphasized its commitment to indigenous entrepreneurship and innovation, and clarified that the investment in PPSL was made to comply with RBI regulations.

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