## Paytm's Investment Application in Paytm Payment Services Arm
Paytm has clarified that the government has not deferred its license application to invest in its Paytm Payment Services arm. This clarification comes in response to a Reuters report that claimed the government had deferred approval due to concerns about Chinese shareholding in the parent company.
Paytm, in a blog post, stated that the company has not received any communication regarding the deferment of the application. They emphasized that Paytm Payment Services Ltd (PPSL) is a subsidiary of One97 Communications Ltd (OCL), an Indian company with no Chinese board representation or special rights.
The company also highlighted its compliance with RBI regulations, stating that the formation of PPSL, transfer of online payments business, and the investment of Rs 500 million were undertaken to comply with RBI's regulations.
Paytm further clarified that all Key Managerial Personnel (KMPs) and Board members of OCL are of Indian origin. They also pointed out that the application for the license was filed in November 2020 and resubmitted in December 2022 to comply with Press Note 3 under FDI rules.
The company expressed its commitment to supporting Paytm as a homegrown entity and empowering Indian companies to compete globally. They believe that government backing is crucial for driving technological advancements and ensuring seamless payment services for SMEs, businesses, and consumers.
The Reuters report had also mentioned that the Ministry of Home Affairs approved the investment in January, but the Foreign Ministry turned it down due to "political grounds." However, Paytm has not commented on this specific aspect in their response.
The final decision on the FDI issue is expected to be taken by an inter-ministerial committee after due consideration and comprehensive examination.