Paytm Refutes Media Reports On PPSL's Licence Application Deferral
The development comes in response to Paytm Payment Services's application for online payment aggregator licence for online merchants.
Paytm has refuted reports on the deferral of the licence application of Paytm Payment Services Ltd., according to its official statement. Paytm said that it has not received any communication suggesting a deferral or penalties with regards to PPSL's licence application. In fact, it has provided all the relevant information to the government, it said.
"We wish to clarify that we have not received any communication suggesting a deferral or penalties. Any notion to the contrary is completely unfounded and misleading," it said.
PPSL is a wholly owned subsidiary of One97 Communications Ltd. The development comes in response to PPSL's application for an online payment aggregator licence for online merchants.
In the statement, Paytm also added that the formation of PPSL, the transfer of online payments business, and the investment of Rs 500 million were undertaken to comply with the guidelines issued by the Reserve Bank of India.
This investment was made from OCL's existing cash reserves and no Chinese capital was raised, it said.
Till date, OCL's founder, Chief Executive Officer Vijay Shekhar Sharma, remains the largest shareholder, with an aggregate holding of 19.4%. This comes after Antfin reduced its stake to less than 10% in August 2023.
Recently, One97 Communications-operated Paytm Payments Bank has also been in the news due to the RBI's clampdown on the bank. On Jan. 31, owing to supervisory and regulatory lapses, RBI directed the bank to not accept further credits into its customer accounts and wallets after March 15.
NDTV Profit had previously reported that inadequate Know-Your-Customer procedures, which led to transactions worth crores of rupees, were one of the major reasons for the RBI to impose curbs on Paytm Payments Bank.