Paytm Parent Injects Rs 2,250 Crore Into Payments Arm After RBI Nod

The funding strengthens Paytm Payments Services following RBI clearance to act as a payment aggregator.

Overview

One97 Communications completed a Rs 2,250 crore investment in Paytm Payments Services on Dec. 12 via a subscription to a rights issue.
The Reserve Bank of India granted in-principle approval in August for Paytm Payments Services to operate as an online payment aggregator.
The RBI has lifted the ban on onboarding new merchants that was imposed on Nov. 25, 2022.
NDTV reported that Paytm moved its offline merchant business to Paytm Payments Services following the regulator’s nod.
Paytm Payments Services first applied for a payment aggregator licence in Nov. 2020, then refiled after a 2022 rejection tied to Press Note 3 compliance and a Dec. 14, 2022 government submission.