NEW DELHI: Government is examining FDI from China in Paytm Payments Services, the payment aggregator subsidiary of One97 Communications, sources said.
In Nov 2020, Paytm had applied for a licence with RBI to operate as a payment aggregator under the guidelines on Regulation of Payment Aggregators and Payment Gateways. However, in Nov 2022, RBI rejected its application and asked the company to resubmit it, so as to comply with Press Note 3 under FDI rules.
One97 Communications has investment from Chinese firm Ant Group.
Subsequently, the company filed the required application on Dec 14, 2022 with govt for past downward investment from One97 into the company in order to comply with Press Note 3 prescribed under FDI guidelines.
An inter-ministerial committee is examining investments from China in Paytm and decision would be taken on the FDI issue after due consideration and comprehensive examination, sources said.
Under Press Note 3, govt had made its prior approval mandatory for foreign investments in any sector from countries that share land border with India to curb opportunistic takeovers of domestic firms following the pandemic.
In Nov 2020, Paytm had applied for a licence with RBI to operate as a payment aggregator under the guidelines on Regulation of Payment Aggregators and Payment Gateways. However, in Nov 2022, RBI rejected its application and asked the company to resubmit it, so as to comply with Press Note 3 under FDI rules.
One97 Communications has investment from Chinese firm Ant Group.
Subsequently, the company filed the required application on Dec 14, 2022 with govt for past downward investment from One97 into the company in order to comply with Press Note 3 prescribed under FDI guidelines.
An inter-ministerial committee is examining investments from China in Paytm and decision would be taken on the FDI issue after due consideration and comprehensive examination, sources said.
Under Press Note 3, govt had made its prior approval mandatory for foreign investments in any sector from countries that share land border with India to curb opportunistic takeovers of domestic firms following the pandemic.