Fintech Company One97 Communications Ltd (OCL) on Monday said it has not received government approval to invest in its payments aggregation subsidiary Paytm Payment Services Ltd. Paytm Payment Services Limited (PPSL) had applied for a license to operate as a payment aggregator from the Reserve Bank of India (RBI). The request was made under the guidelines of the Regulation of Payment Aggregators and Payment Gateways. However, the RBI rejected PPSL’s application in November 2022 and asked the company to resubmit it in compliance with Press Note 3 under FDI norms.
“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,” Paytm told the stock exchange. In the meantime, PPSL will continue to provide services to its existing online business partners, Paytm said.
The independent director resigned.
Paytm’s operating company One97 Communications Limited on Monday said Manju Agarwal, independent director of subsidiary Paytm Payments Bank, has resigned from the board due to personal reasons. The Reserve Bank had on January 31 imposed several restrictions on Paytm Payments Bank Limited (PPBL). It has been asked to stop accepting deposits or top-ups in customers’ accounts, wallets, Fastag and other devices after February 29. A day after this directive, Agarwal resigned from PPBL. The stock exchange had sought an explanation from Paytm about his resignation.
Resigned due to personal reasons, the company said.
“PPBL has informed us that Manju Agarwal, Independent Director, has resigned from the Board of Directors with effect from February 1, 2024 due to personal commitments,” Paytm said in a filing to the stock exchange. 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. Vijayshekhar Sharma holds 51% stake in the bank. Apart from Agarwal, Paytm Payments Bank Independent Director Shinjani Kumar has also resigned from the Board of Directors on February 1. PPBL did not respond to questions sent by the media in this regard.
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