One 97 Communications Limited (OCL), which owns India’s leading payments and financial services distribution brand Paytm, has received the government approval for an investment into its wholly-owned subsidiary, Paytm Payments Services Limited (PPSL).
In an exchange filing on August 28, Paytm said that the approval was received from the Department of Financial Services under the Ministry of Finance. With the approval, Paytm will now proceed to resubmit its application for a payment aggregator (PA) licence from the Reserve Bank of India (RBI).
The approval is a major milestone for the homegrown Indian company, bringing it closer to securing the final PA license. This will allow Paytm to onboard new online merchants and boost its revenue growth. PPSL was already catering to its existing base of merchants.
PPSL helps online merchants accept a wide range of digital payments from customers. Through its payment gateway services, PPSL offers merchants a reliable source of accepting payments and financial tools that help enhance the experience to customers. The company continues to offer these services to their existing merchant partners.
In its filing said that with this development, Paytm remains committed to a compliance-first approach and upholding the highest regulatory standards. As an Indian company, Paytm is focused on contributing to and advancing the Indian financial ecosystem, it said.
