Paytm addresses licensing process status amid speculations, assures government supports fintech industry

New Delhi, April 16 (IANS) Fintech major Paytm clarified the status of its licensing process, denying any deferral or penalties. Recent media reports speculated on the deferral of Paytm Payment Services Limited’s license application and potential penalties. The company spokesperson stated that the information appears speculative as the government has consistently championed fintech initiatives.

PPSL, a wholly-owned subsidiary of One 97 Communications Ltd (OCL), applied for an online Payment Aggregator (PA) license for online merchants. The company emphasized that the formation of PPSL, transfer of online payments business, and investment of capital in PPSL were necessary to comply with RBI’s guidelines.

Paytm, an Indian company, underlines its commitment to indigenous entrepreneurship and innovation. The spokesperson mentioned that all key managerial personnel and board members of OCL are of Indian origin, with no Chinese capital raised by OCL after the introduction of Press Note 3 of 2020. The investment of Rs 500 million in PPSL was made from OCL’s existing cash reserves to comply with RBI’s regulations.

The regulator requested PPSL to obtain necessary approvals for the investment of Rs 500 million and resubmit the application, to which PPSL complied promptly. As per the company’s stock exchange filing dated March 26, 2023, PPSL was granted an extension and allowed to continue with its online payment aggregation business for existing partners.