One 97 Communications Limited, the parent company of Paytm has received a compounding order from Reserve Bank of India in one of the compounding applications filed by it under the applicable provisions of the Foreign Exchange Management Act, 1999 (FEMA).
According to the exchange filing, the company has informed that compounding was undertaken by the Company as a regulatory resolution mechanism available under FEMA, and has no material impact on the Company’s financials or operations.
As per the order, the RBI has imposed a compounding fee of Rs 18.76 lakhs (Indian Rupees Eighteen Lakhs Seventy-Six Thousand) in respect of certain investments made in Little Internet Private Limited by Little Internet Singapore Pte Ltd. The Company is in the process of making the payment for the compounding fee, pursuant to which this item shall stand disposed.
Further, as of the financials disclosed in Q3, during the quarter ended December 31, 2025, the RBI has compounded certain matters relating to Nearby India Private Limited, for a compounding fee of approximately Rs 4.28 Lakhs (Indian Rupees Four Lakhs Twenty-Eight Thousand).
The impugned transactions pertain to the period March 2016 to June 2017. Further there is no material financial impact on the Company.