fintech Company One97 Communications Limited (OCL) on Monday said that it has not received government approval for investment in its payment aggregator subsidiary Paytm Payment Services Limited. Paytm Payment Services Limited (PPSL) had applied for a license before the Reserve Bank of India (RBI) to operate as a payment aggregator. The application was made under the regulation guidelines for payment aggregators and payment gateways. RBI, however, rejected PPSL’s application in November, 2022 and asked the company to resubmit it in compliance with Press Note 3 under FDI norms.
Paytm told the stock exchange, “As part of the application, PPSL has also applied to the Government of India for approval of the investment made by OCL, the approval of which is currently awaited. We will inform the stock exchanges about this as soon as we get the approval.” Paytm said that in the meantime PPSL will continue to provide services to its existing online business partners.
Independent director resigned
One97 Communications Limited, the company that operates Paytm, said on Monday that Manju Aggarwal, independent director of subsidiary Paytm Payments Bank, has resigned from the board due to personal reasons. The Reserve Bank had imposed several restrictions on Paytm Payments Bank Limited (PPBL) on January 31. It has been asked to stop accepting deposits or top-ups in customer accounts, wallets, Fastag and other instruments after February 29. A day after this instruction, Agarwal resigned from PPBL. The stock exchanges had sought clarification from Paytm regarding his resignation.
The company said- resigned due to personal reasons
“PPBL has informed us that Independent Director Manju Aggarwal has resigned from the Board of Directors with effect from February 1, 2024 due to her personal commitments,” Paytm said in a filing to the stock exchanges. It was registered by the Board of Directors of PPBL on February 6, 2024.” One97 Communications holds 49 percent of the paid-up share capital of PPBL. Vijay Shekhar Sharma holds 51 percent stake in the bank. Apart from Agarwal, Paytm Payments Bank’s independent director Shinjini Kumar has also resigned from the board of directors on February 1. PPBL has not responded to the questions sent by the media in this regard.
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