According to a senior finance ministry official who spoke to sources on Friday, India’s Paytm has received government permission for its 500 million rupees ($5.97 million) investment in a significant subsidiary.
The certification will eliminate the primary obstacle to the segment, Paytm Payment Services, resuming regular commercial activities. The approval had been delayed for months because of the company’s connection to China.
One of the largest surviving segments of the fintech company’s operations is Paytm Payment Services, which generated 25% of total revenue in the fiscal year that concluded in March 2023.
Reuters stated earlier this month that the investment had received approval from the government.
The corporation can apply for a payment aggregator license from the Indian central bank, which will review it, according to Financial Services Secretary Vivek Joshi.
Following the news, Paytm shares increased 10% to 509.05 rupees.
$1 is equal to 83.7183 Indian rupees.