Amazon Pay Payment Gateway : India's Paytm Gets Government Approval To Invest In Its Payments Unit, Will Reapply For Payment Licence

Indian payments company Paytm has announced that it has received approval from the country's finance ministry to make investments in its payment services business.

Following the Reserve Bank of India's directive to shut down Paytm's payments banking operations in January this year, One 97 Communications, commonly known as Paytm, has been under intense scrutiny by India's banking regulator and the Financial Crimes Enforcement Agency.

Paytm said that on the basis of the latest approval, the company will re-submit its application to the finance ministry to revive the licence for its payment services business.

Meanwhile, Paytm's payment services will continue to provide online payment aggregation services to existing partners.

Paytm has not yet disclosed details of the approved investments.

In July this year, Reuters, citing a senior finance ministry official, reported that Paytm had received approval to invest Rs 500 million (about $6 million) in its payments unit.

Paytm's payment services are one of the fintech company's largest remaining businesses, accounting for a quarter of its total revenue in the fiscal year ending March 2023.

India's Financial Services Minister Vivek Joshi said in July that the company could apply to the Reserve Bank of India for a payment aggregation licence, which would be evaluated by the central bank.

Paytm's shares closed the day down 1.31 TP3T. the company's stock has fallen more than 291 TP3T since the Reserve Bank of India ordered Paytm's closure in January.