Paytm unit seeks RBI exemption from NBFC tag

Paytm Entertainment — a subsidiary of giant Paytm – faces the risk of being classified as a Non-Banking Financial Company (NBFC) after it lent money to a joint venture business that exceeded the central bank’s limits. The online ticket booking services provider has approached the Reserve Bank of India, seeking exemption from being categorised as a finance company as it is not in the business of lending, said people with direct knowledge of the matter. RBI rules say if a company derives 50% of its total assets and income from financial assets, it needs to register with the central bank as an NBFC.