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Respite For Paytm? Fintech Giant Set To Secure Govt Nod To Invest In Payments Gateway Arm

Startup News FYI

Startup News FYI · 1y ago

Respite For Paytm? Fintech Giant Set To Secure Govt Nod To Invest In Payments Gateway Arm

Paytm, the troubled fintech major, is reportedly close to securing approval for its investment in its payments gateway arm. The matter has been pending for two years and the approval could provide some relief amid regulatory challenges. The Chinese shareholder of Paytm, Ant Group, reducing its stake is said to have influenced the government's decision. The investment is less than $12 million, and an inter-ministerial panel will make the final call. This development comes as Paytm faces regulatory issues, including restrictions on its payments bank arm imposed by the Reserve Bank of India.

Related News

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.

Mobikwik-owned Zaakpay gets RBI's in-principle nod to operate as payment aggregator

Money Control

Money Control · 1y ago

Mobikwik-owned Zaakpay gets RBI's in-principle nod to operate as payment aggregator

Fintech company Mobikwik's payment gateway arm, Zaakpay, has received in-principle approval from RBI to operate as a payment aggregator. This will enable Zaakpay to onboard new merchants. Mobikwik had applied for the license two years ago, and after initially being rejected in 2021, they reapplied in October 2022. Other top payment gateway firms in India, including Razorpay, Paytm, PayU, and Cashfree, are still awaiting final approval from RBI to onboard new merchants.

Paytm close to winning approval for investment in payments gateway arm

Economic Times

Economic Times · 1y ago

Paytm close to winning approval for investment in payments gateway arm

Paytm is on the verge of getting approval to invest in its payments gateway arm, a decision that has been pending for two years. The Indian government's support grew after Paytm's Chinese shareholder, Ant Group, reduced its stake in the company. The approval, which could come within days, is significant for Paytm as it would bolster its arm that processes online transactions. The Reserve Bank of India has tightened its grip on the company, and the approval would indicate that Paytm is still in the government's good books.

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.

As RBI deadline nears, Paytm and Axis Bank to jointly submit TPAP application with NPCI this week: Report

IndianStartupNews

IndianStartupNews · 1y ago

As RBI deadline nears, Paytm and Axis Bank to jointly submit TPAP application with NPCI this week: Report

Fintech giant Paytm and Axis Bank are applying to become third-party application providers for the Unified Payments Interface (UPI) platform in India. This move comes after the Reserve Bank of India directed Paytm to seek partnerships with banks to sustain its UPI operations due to restrictions placed on its payments bank, PPBL. Paytm is also in discussions with other banks, including Yes Bank, HDFC Bank, ICICI Bank, and Canara Bank, to secure partnerships. The aim is to ensure that Paytm's 90 million UPI users do not face disruptions in service.

Paytm Gets Govt Nod For INR 50 Cr Investment In Its Payment Arm; Stock Rallies 10%

Inc42 · 1y ago

Paytm Gets Govt Nod For INR 50 Cr Investment In Its Payment Arm; Stock Rallies 10%

Paytm's stock saw a 10% rise to INR 508.85 per share on the BSE after receiving government approval to invest INR 50 Cr in its payments subsidiary, Paytm Payment Services. This approval allows them to apply for a payment aggregator license from the Reserve Bank of India.

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.

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.

Paytm gets NPCI nod to become third-party app provider for UPI

Entrackr

Entrackr · 1y ago

Paytm gets NPCI nod to become third-party app provider for UPI

Paytm has received permission from the National Payments Corporation of India (NPCI) to participate in UPI through the Third-Party Application Provider (TPAP) under the multibank model, as per the fintech company’s filings on the exchange. In a separate release, NPCI stated that four banks – Axis Bank, HDFC Bank, State Bank of India, and Yes Bank – will act as Payment System Providers (PSP). “Yes Bank will also serve as the merchant acquiring bank for existing and new UPI merchants for OCL. The “@Paytm” handle shall be redirected to Yes Bank,” the agency said. This move will enable Paytm users and merchants to continue using UPI services, including autopay mandates, without interruption. OCL (Paytm-parent One 97 Communications) has been advised to complete migration for all existing handles and mandates, wherever required, to new PSP banks as soon as possible. The announcement comes weeks after the central bank announced a set of additional steps as a follow-up to its actions against Paytm Payments Bank. The steps also included an advisory to NPCI to consider OCL’s request to become a TPAP for the UPI channel. Recently, Paytm discontinued inter-company agreements between the company and Paytm Payments Bank Limited (PPBL). The new move aimed to ensure the independent operations of PPBL, the company added. Earlier, Vijay Shekhar Sharma stepped down from his position as part-time non-executive chairman and board member of PPBL. The company also announced the reconstitution of its board of directors and plans to soon appoint a new chairman. The developments came in the wake of the Reserve Bank of India (RBI) imposing a set of business restrictions on Paytm Payments Bank over non-compliance and regulatory concerns.

Paytm issues FAQs: What works after March 15? Here's what users must know

Livemint

Livemint · 1y ago

Paytm issues FAQs: What works after March 15? Here's what users must know

Indian fintech Paytm has released a list of frequently asked questions (FAQs) for its users following the closure of its Paytm Payments Bank (PPBL) arm. Despite the discontinuation of certain services, including PPBL, the Paytm app will remain fully operational. Users can still make transactions using Paytm QR codes, Soundbox, and card machines. Other services, such as ticket bookings, mobile recharge, utility bill payments, and access to discounts and offers, will also continue without disruption. Additionally, investment and insurance services offered by Paytm Money are unaffected.

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