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Paytm denies deferral of approval or penalties for Paytm Payment Services
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
This comes after a Reuters report stated that the Indian government has deferred approval of Paytm’s ₹50-crore ($6 million) investment in its Paytm Payment Services arm in part due to concerns about a Chinese shareholding in the parent company. Shares of One 97 Communications Ltd ended at ₹392, up by ₹2.25, or 0.58%, on the BSE.
Amid recent media speculations, fintech firm Paytm on Tuesday (April 16) has come forward to clarify that it has not received any communication indicating a deferral of a licence application or the imposition of penalties with regard to Paytm Payment Services Ltd (PPSL).
In a blog post, Paytm said, “Recent articles have speculated on the deferral of Paytm Payment Services Limited’s (PPSL) license application and potential penalties. 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.”
This comes after a Reuters report stated that the Indian government has deferred approval of Paytm’s ₹50-crore ($6 million) investment in its Paytm Payment Services arm in part due to concerns about a Chinese shareholding in the parent company.
Also Read: Paytm Share Price: Domestic, foreign funds raise stake even as stock falls 37% in March quarter
“The source-based information appears speculative, as the government has consistently championed fintech initiatives,” the Paytm spokesperson stated. “The ongoing application process has seen us promptly provide the requested information, with no indication of rejection or penalties involved.”
“Supporting Paytm as a homegrown entity is pivotal for empowering Indian companies to compete globally and drive technological advancements,” the spokesperson said. “Their backing ensures seamless payment services for SMEs, preserving trust and fostering digital growth for businesses and consumers.”
Further, Paytm reiterated its Indian roots and commitment to indigenous entrepreneurship. “Paytm, an Indian company founded by an Indian citizen, with our Founder CEO as the largest shareholder and sole Significant Beneficial Owner (SBO) of One 97 Communications Limited (OCL), underscores its commitment to indigenous entrepreneurship and innovation,” the spokesperson affirmed.
Also Read: RBI’s crackdown on Paytm Payments Bank: The inside story
“All Key Managerial Personnel (KMPs) and Board members of OCL are of Indian origin, with Antfin having no Board representation or special rights.”
The spokesperson clarified that the formation of PPSL, the transfer of the online payments business, and the investment of ₹50 crore were undertaken in compliance with RBI’s regulations.
Shares of One 97 Communications Ltd ended at ₹392, up by ₹2.25, or 0.58%, on the BSE.
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