Paytm is on track to complete its Rs 100 crore investment plan in GIFT City, Gujarat, within the next six months. The investment will establish a development centre aimed at boosting job creation and enhancing the company’s financial services and products.
One97 Communications Limited, Paytm’s parent company, announced its commitment to this investment in its recent annual report. The company is in the process of securing the necessary approvals to set up a subsidiary in the GIFT City International Financial Services Centre (IFSC).
This process is expected to conclude within the next six months, contingent on receiving all required approvals. The planned investment in GIFT City aligns with Paytm's strategy to create a global financial ecosystem.
The centre will be instrumental in developing advanced financial technology, including artificial intelligence-driven cross-border remittance and payments systems. This move is expected to open up significant global opportunities for the firm.
Paytm’s founder and CEO, Vijay Shekhar Sharma, emphasised the importance of this investment, stating that it represents a crucial step towards building a sophisticated financial technology landscape.
The development centre will focus on employing engineers who will work on creating and refining financial services, which will contribute to the region’s job market.
GIFT City, India's first global financial hub, was designed to serve as a unique international financial jurisdiction. According to the Economic Survey presented by Union Finance Minister Nirmala Sitharaman, GIFT City IFSC aims to consolidate India-centric international financial services and act as a gateway for global capital flows into and out of the country.
The announcement of Paytm's investment comes amidst regulatory changes in GIFT City. Recently, the approvals for family investment funds have been put on hold due to concerns from the Reserve Bank of India about potential money laundering risks.
This cautious approach from the central bank reflects a broader effort to ensure that the financial activities in GIFT City remain transparent and compliant with regulations.
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