Paytm: Not to categorised as NBFC seeks RBI exemptionJeetam Saini
Paytm Entertainment had sanctioned a one-time loan to its joint venture Paytm First Game to a tune of Rs 80 Crore. Post this loan financial exceeds 50% cap specified under the RBI rules as on March 31, 2021.
NBFC have to apply for licence from RBI for its operation and need to file periodic compliance reports with RBI every six Months.
To save guard Paytm Entertainment wrote a letter to RBI saying that the transaction was a one-time thing, and the company doesn’t intend to make systemic practice.
Source:- The Economic Times
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