Paytm has received a compounding order from the Reserve Bank of India (RBI) related to Foreign Exchange Management Act (FEMA) contraventions. The order involves a compounding fee of INR 18.76 lakhs for investments in Little Internet Private Limited, and another INR 4.28 Lakhs relating to Nearby India Private Limited. The company is processing payments and anticipates no material financial impact.
RBI Order Details
Paytm received an order from the Reserve Bank of India (RBI) on February 2, 2026, relating to compounding applications filed under the Foreign Exchange Management Act (FEMA). The compounding addresses certain investments made in two subsidiaries: Little Internet Private Limited and Nearbuy India Private Limited.
Compounding Fees
The RBI imposed a compounding fee of INR 18.76 lakhs concerning investments in Little Internet Private Limited. Additionally, matters pertaining to Nearby India Private Limited have been compounded with a fee of approximately INR 4.28 Lakhs. The company is in the process of remitting payments against these fees.
Implications and Resolution
The compounding was undertaken as a regulatory resolution mechanism available under FEMA. Paytm anticipates that this order will not have a material impact on the company’s financials or operations. The transactions that were compounded occurred between March 2016 and June 2017.
Source: BSE
