Paytm's China link that made authorities sit up
₹50 crore. It is this investment in the company that is under scrutiny, said the official cited above.
As per FDI rules, investments of up to 49% are allowed under the automatic route in the private banking sector, extendable up to 74% with the approval of the government. However, India strengthened its foreign investment policy to regulate investment from neighbours during the covid-19 pandemic when valuations of companies were at a record low and the country saw tensions rise with China after clashes in Ladakh’s Galwan.
Meanwhile, the Indian central bank on 31 January directed Paytm Payments Bank Ltd to stop new credit and deposit operations, top-ups, fund transfers, and other such banking operations after 29 February this year. mihir.mishra@livemint.com
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