RBI gives Paytm 15 days more time to resubmit Payment Aggregator License

Paytm launches co-branded RuPay credit card in partnership with SBI
Paytm launches co-branded RuPay credit card in partnership with SBI

In November of last year, the banking regulator required Paytm to reapply for the license within 120 days and barred it from adding any new online retailers to the platform.

The country’s banking authority has given Indian financial technology company Paytm Payments Services Ltd a further 15 days to reapply for a license to operate as a payment aggregator, the company announced on Sunday.

Without adding any new merchants, Paytm Payments Services can continue to handle online payments for its current partners in the meantime, the firm said in a notification to stock exchanges on Sunday.

Platforms that combine different online payment choices, known as payment aggregators, in India require a license.

The One 97 Communications division, which owns the well-known Paytm brand, had its application for a payment aggregator licence rejected by India’s banking regulator, the Reserve Bank of India, in November and asked to resubmit the application within 120 days.

In a regulatory filing, One97 Communications reported receiving a letter from the RBI stating that Paytm Payment Service Limited may continue operating its Online Payment Aggregation business while it waits for the central government to approve a prior investment made by One97 Communications into Paytm Payment Service Limited in accordance with FDI Guidelines.

“As per RBI’s letter, on receipt of approval from Government of India, PayTM Payment Service Limited will have fifteen days to submit the application, seeking authorisation for PPSL to operate as an online PA,” the filing said, according to Zee News report.

The business claimed that the most recent action had no appreciable effects on its operations or income and that it could continue to add new offline merchants and provide payment services to them.

“This continues to have no material impact on our business and revenues since the communication from RBI is applicable only to onboarding of new online merchants and we can continue to provide payment services to our existing online merchants,” the filing said.

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