The government has approved Paytm’s FDI proposal for payment aggregator business, according to a Reuters report. Following this, the shares of One97 Communications, the parent of Paytm, shares surged Rs 46.25 or 10 per cent to 508.85 apiece on the BSE.
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Paytm can approach the Reserve Bank of India (RBI) to seek payment aggregator licence which the central bank will evaluate.
Paytm has got approval from the government for its Rs 50 crore investment in a key subsidiary, according to the Reuters report citing a top finance ministry official.
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The approval, which was stuck for months due to the company’s link to China, will remove the main stumbling block to the unit, Paytm Payment Services, resuming normal business operations.
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Paytm Payment Services is one of the biggest remaining parts of the fintech firm’s business, accounting for a quarter of consolidated revenue in the financial year ended March 2023.
