FDI flow from China in Paytm Payments under scanner

Feb 12, 2024

New Delhi: Government is investigating FDI from China paytm payment The services are a payment aggregator subsidiary of One97 Communications, sources said.
In November 2020, Paytm had applied for a license with the RBI to operate as a payment aggregator under the guidelines on regulation of payment aggregators and payment gateways. However, in November 2022, the RBI rejected its application and asked the company to resubmit it to comply with Press Note 3 under FDI rules.
Chinese company Ant Group has an investment in One97 Communications.
Subsequently, the company filed the necessary application on December 14, 2022 with the government for the previous downward investment in the company from One97 to comply with Press Note 3 prescribed under the FDI guidelines.
Sources said an inter-ministerial committee is examining investment from China in Paytm and a decision on the FDI issue will be taken after due consideration and comprehensive investigation.
Under Press Note 3, the government had made its prior approval mandatory for foreign investment in any sector from countries sharing land borders with India to prevent opportunistic takeovers of domestic companies after the pandemic.

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