Paytm winds up RMG business, to invest in Paytm Money and Paytm Services

Following the RMG ban, Paytm's First Games unit ceases operations; parent OCL approves investments in Paytm Money and Paytm Services and simplifies group structure

Paytm on Tuesday said it has shut its real money gaming (RMG) business, just days after the government announced its plan to ban the money-based games. While the Parliament has passed the bill and the law has been notified too, the government is yet to come out with a date from which it will come into force.

 

One97 Communications (OCL), the parent firm of Paytm, said its unit First Games will continue to offer online social games.

 

The carrying value of investment in First Games was nil, the company said, adding that the gaming unit’s share of profit or loss was less than one per cent of OCL’s consolidated profit or loss for the first quarter of financial year 2025-26 (Q1 FY26).

 

 

“OCL does not have any exposure due to this other than a shareholder loan of approximately ₹200 crores, including applicable interest, as on June 30, 2025,” the company stated.

 

 

It said that First Games is considered as a joint venture from the Paytm Group’s consolidation perspective. It does not form part of OCL’s consolidated revenues.

 

First Games Technology received a notice from the Directorate General of GST Intelligence (DGGI) claiming a proposed liability of ₹5,712 crore along with interest and penalties in April.

 

Additionally, the company approved an investment of up to ₹300 crore and ₹155 crore in its wholly owned subsidiaries, Paytm Money Limited and Paytm Services Private Limited respectively, subject to necessary approvals.

 

The company is simplifying its group structure by making Foster Payment Networks a fully owned subsidiary.

 

It approved a transfer of up to 100 per cent of Foster’s shares from Paytm Financial Services and other shareholders to the company for up to ₹61 crores.

 

The company also plans to transfer shares of First Games Technology from Paytm Cloud Technologies to Paytm Services, for up to ₹140 crores, subject to necessary approvals.