Paytm seeks shareholders’ nod to create firm for payments biz

Ipo-bound Paytm is seeking approval from its shareholders in an extraordinary general meeting (EGM) on September 23, to turn its payment aggregator business into a new subsidiary called Paytm Payments Services Limited.

This follows a directive from the Reserve Bank of India (RBI).

In a notice to shareholders, Paytm sought approval from them to “consider and approve transfer of payment aggregator business to Paytm Payments Services, a wholly-owned arm of the company, to comply with the RBI guidelines”.

Accordingly in order to meet the requirements issued by the RBI, Paytm had incorporated on October 10, 2020, a new entity called ‘Paytm Payment Services Limited’, as it’s wholly-owned subsidiary company.