Paytm’s investment in Paytm Payment Services (Image Source: Twitter)
India has postponed the approval of Paytm‘s 500 million rupee (Rs 50 crore) investment in its Paytm Payment Services arm due to concerns over Chinese shareholding in the parent company, sources familiar with the matter revealed. According to the Reuters report, the delay comes amidst heightened scrutiny from India’s banking regulator and financial crime-fighting agency, initiated after the central bank’s directive to wind down Paytm’s payments bank earlier this year.
However, a panel comprising representatives from India’s home affairs, finance, and industries ministries, along with input from the foreign office, must endorse the investment. Antfin (Netherlands) Holdings, a Chinese entity, owns a significant stake in Paytm, adding a layer of complexity to the approval process.
While the Ministry of Home Affairs greenlit the investment in January, the foreign ministry rejected it on purported “political grounds,” prompting the decision’s deferral, as per sources and documents reviewed by Reuters.
