The investment allows Paytm to beef up its arm which processes online transactions. While the investment is less than $12 million, an approval would signal Paytm is still in the governments good books even as the countrys banking regulator has tightened its grip on the company.
As per reports, government's stance towards the investment has softened, particularly following a reduction in the stake held by Paytm's Chinese shareholder, Ant Group Co.
“The action against Paytm should be followed up by some sort of clarification. RBI has been urged to bring in FAQs as many customers won't be aware of many issues,” an official said.
The EPFO advised all its Field Offices to refrain from accepting claims associated with bank accounts in Paytm Payment Bank Limited with effect from next month.