One 97 Communications 's Paytm, a leading Indian digital payments platform, has unveiled a groundbreaking service that allows Non-Resident Indians (NRIs) from 12 countries to make UPI payments in India using their international mobile numbers. This innovative feature eliminates the need for a local Indian SIM card, making transactions more convenient for NRIs visiting or conducting business in India.

Key Features of the New Service

• Compatibility: Works with NRE (Non-Resident External) or NRO (Non-Resident Ordinary) bank accounts
• Functionality: Enables sending money, paying merchants via QR codes, and shopping on Indian platforms
• Currency Conversion: No need for currency conversions, streamlining the payment process

Countries Covered

The service is available to Indians residing in:

Additional Features

Paytm has incorporated several user-friendly features to enhance the experience:

1. Downloadable UPI statements
2. Automatic expense categorization
3. AI-generated spending summary (Paytm Playbook)

Current Status and Future Plans

The service is currently in beta testing, with plans to roll out to all eligible users in the near future. This move by Paytm is expected to significantly ease financial transactions for NRIs, potentially boosting cross-border economic activities.

Market Response

The announcement has been well-received by the market. Shares of One 97 Communications Limited, Paytm's parent company, closed at ₹1,305.60, marking an increase of ₹18.60 or 1.45%.

This new service, powered by the National Payments Corporation of India, represents a significant step in expanding the reach and accessibility of India's digital payment ecosystem to its global diaspora.

One 97 Communications Limited (Paytm) has initiated a corporate restructuring move, seeking shareholder approval to transfer its Offline Merchants Payment Business to its wholly-owned subsidiary, Paytm Payments Services Limited (PPSL). This decision aims to streamline the company's payment services operations in response to regulatory requirements.

Key Details of the Proposed Transfer

• Business Segment: The transfer involves Paytm's offline merchants serviced through QR, Soundbox, and EDC machine payments.
• Transfer Method: The business will be transferred as a going concern on a slump sale basis.
• Consideration: The transfer will be at book value, approximately INR 960.00 crores.
• Effective Date: To be determined in the business transfer agreement.

Rationale Behind the Move

1. Regulatory Compliance: The transfer aligns with the Reserve Bank of India's (RBI) Master Directions on Regulation of Payment Aggregators.
2. Business Consolidation: The move aims to consolidate online and offline merchant payment businesses within one regulated entity.
3. Operational Efficiency: It seeks to build efficiency and synergy within the Paytm group.

Financial Implications

• The transferred business generated approximately 47% of Paytm's total revenue.
• The transfer is not expected to impact the economic interests of Paytm's shareholders.
• Paytm's consolidated financial position and results are expected to remain unaffected.

Shareholder Approval Process

• Paytm is conducting a postal ballot for shareholder approval.
• The e-voting period has been announced.
• Results will be announced after the voting period concludes.

Regulatory Context

PPSL received in-principle approval from the RBI to operate the Online Merchants Payment Business under the Payment and Settlement Systems Act, 2007. This transfer is expected to bring both online and offline payment services under a single regulated entity.

Management's Perspective

The Board of Directors, based on the Audit Committee's recommendations, views this transfer as being in the best interest of the company and its stakeholders. They emphasize that the move is expected to enhance regulatory compliance and operational efficiency without affecting the company's overall financial position.

This strategic restructuring represents a significant step towards aligning One 97 Communications' business model with regulatory requirements while potentially enhancing its operational capabilities in the digital payments market.