Paytm's Strategic Move: Major Investment in Payment Services Subsidiary

Fintech giant One97 Communications has invested Rs 2,250 crore in its subsidiary, Paytm Payments Services Limited, through a rights issue. The investment follows RBI's approval for Paytm Payments Services to operate as a payment aggregator. Restrictions on onboarding new merchants have also been lifted by the RBI.

In a strategic financial maneuver, One97 Communications, the parent company of Paytm, announced a significant capital infusion of Rs 2,250 crore into its wholly-owned subsidiary, Paytm Payments Services Limited.

This investment, completed through a rights issue, comes on the heels of the Reserve Bank of India granting the subsidiary permission to function as a payment aggregator after an extensive approval process.

Notably, the central bank has also lifted previous restrictions that prevented Paytm Payments Services from onboarding new merchants, a move that signals a positive shift in regulatory sentiment towards the company's operations.

(With inputs from agencies.)