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Paytm to create new company for payments business
September 01, 2021
Mobile payment firm Paytm is looking to transform its payment aggregator business into new subsidiary Paytm Payments Services Ltd, as the deadline mandated by the Reserve Bank of India (RBI) inches nearer, it told stakeholders in a notice issued on August 31.
It is expected to seek for approval for the equivalent from its stakeholder through the extraordinary general meeting scheduled for September 23.
The move is in a sync with the rules of the Reserve Bank of India which asks that payments aggregators to be run as a different organization in the after obtaining a license from the central bank.
The indicative book value of Paytm’s payment business which includes gateway business is around ₹275-350 crore which will be paid to One97 Communications Ltd in five equal annual installments, as per the notice.
The actual consideration will be the derived basis book value showing up as of August 31, 2021.
Paytm, which is focusing on a (IPO) of ₹16,600 crore, offers payment, business and cloud and financial administrations to 333 million customers and more than 21 million merchants.
The Reserve Bank of India (RBI), in March 2020, released guidelines to regulate payment aggregators (PAs) and payment gateways (PGs).
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