Paytm pumps Rs 2,250 cr into payments unit after RBI nod

• Paytm's parent company, One97 Communications, invested Rs 2,250 crore in its subsidiary, Paytm Payments Services Limited (PPSL), via a rights issue.
• The investment follows PPSL receiving RBI approval last month to operate as a payment aggregator.
• The Reserve Bank of India also lifted restrictions on PPSL onboarding new merchants, which were imposed in November 2022.
• PPSL had initially applied for a payment aggregator license in November 2020, facing a rejection in November 2022 before resubmitting.

Why It Matters: Paytm's investment secures its payment services growth after RBI approval.