Good news for Paytm investors, government panel approves $6 million investment

There is good news for Paytm investors. According to a report by the authors, recently UPI payments company Paytm has received a green signal from a government panel to invest $6 million in one of its key subsidiaries. The group monitors China-related investments. Although the final approval is yet to be received from the finance ministry, this initial approval is a big step for Paytm to return to business as usual. Paytm faces problems Paytm Payment Services, a leading name in the fintech industry, suffered a setback as its subsidiary Paytm Payments Bank had to suspend operations due to regulatory issues imposed by the RBI. This development had a negative impact on Paytm's market value, leading to a sharp decline in its stock performance. Initially the government panel was reluctant to give approval as they were concerned about China's Ant Group's 9.88% stake in Paytm. India has been keeping a close watch on Chinese companies since the border issue in 2020. Also Read: Sensex Crosses 80000 Again, Japan's Nikkei Is Waiting For This Govt Board's Approval For The Last Two Years As Paytm is barred from acquiring new customers from March 2023 following the RBI move, without this approval, the company would have been forced to shut down its payment services business. Once the formal approval is received, Paytm will be able to obtain a “payment aggregator” license from the Reserve Bank of India. However, there has been no official announcement from either side regarding the issue. Also Read: Race Power Infra: India's Power Sector May Get A Boost With Range Power Infra Announcement