RBI Imposes Compounding Fee of Rs 18.76 Lakh on One 97 Communications for FEMA Violations
In February 2026, the Reserve Bank of India (RBI) issued a compounding fee of Rs. 18.76 lakh to One 97 Communications Limited (OCL), the parent company of Paytm Payments Services Limited (PPSL), under the provisions of the Foreign Exchange Management Act (FEMA), 1999, for contraventions related to foreign investment transactions in its subsidiary.
About the Compounding Order:
Transaction: Investments worth approximately Rs. 33 crore were made by Little Internet Singapore Private Limited into Little Internet Private Limited (LIPL) during March 2016 to June 2017.
Violation: The case involves contravention of Regulation 5(1) read with Regulation 13 of FEMA Notification 120/RB-2004.
Disclosure: One 97 Communications Limited (OCL) disclosed the compounding order under Regulation 30 of the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements, LODR) Regulations, 2015.
Settlement: Compounding under FEMA is a voluntary process involving admission of contravention and payment of a fee, after which the matter stands disposed.
Others: RBI compounded the Nearby India Private Limited subsidiary of OCL issues for Rs 4.28 lakh in Quarter 3(Q3) of Financial Year 2025-2026(FY26).
In February 2026, the Reserve Bank of India (RBI) issued a compounding fee of Rs. 18.76 lakh to One 97 Communications Limited (OCL), the parent company of Paytm Payments Services Limited (PPSL), under the provisions of the Foreign Exchange Management Act (FEMA), 1999, for contraventions related to foreign investment transactions in its subsidiary.
About the Compounding Order:
Transaction: Investments worth approximately Rs. 33 crore were made by Little Internet Singapore Private Limited into Little Internet Private Limited (LIPL) during March 2016 to June 2017.
Violation: The case involves contravention of Regulation 5(1) read with Regulation 13 of FEMA Notification 120/RB-2004.
Disclosure: One 97 Communications Limited (OCL) disclosed the compounding order under Regulation 30 of the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements, LODR) Regulations, 2015.
Settlement: Compounding under FEMA is a voluntary process involving admission of contravention and payment of a fee, after which the matter stands disposed.
Others: RBI compounded the Nearby India Private Limited subsidiary of OCL issues for Rs 4.28 lakh in Quarter 3(Q3) of Financial Year 2025-2026(FY26).
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