Paytm Payments Services has received Finance Ministry's approval for 'downstream investment' from One 97 Communications into the company, an exchange filing said on August 28.
With this approval, the next step for Paytm Payments Services (PPSL) - a wholly owned subsidiary of One 97 Communications - will be to resubmit its payment aggregator (PA) application. "With this approval in place, PPSL will proceed to resubmit its PA application. In the meantime, PPSL will continue to provide online payment aggregation services to existing partners," said One 97 Communications.
Some approvals to Paytm Payments Services have been due to the company's link to China, and the nod could be a step towards normal business operations.
Paytm reiterated its 'compliance-first approach' and assurance to uphold regulatory standards. "As a homegrown Indian company, Paytm is focused on contributing to and advancing the Indian financial ecosystem," Paytm added.
Read More: Paytm gets administrative warning over RPTs with Paytm Payments Bank
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.
In the June quarter, Paytm's revenue dropped by 36 percent year-over-year to Rs 1,502 crore due to ongoing challenges from RBI restrictions. The company's net loss also widened sharply to Rs 840 crore in Q1 of FY25, the steepest loss since its listing.
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