Paytm Payments Services Limited (PPSL) on Sunday announced that it had received an extension of time from the Reserve Bank of India for resubmission of its payment aggregator (PA) license application.
The RBI said in a letter that PPSL can continue with its online payment aggregation business while it awaits the Centre's approval for past investments from its parent firm One97 Communication (OCL) into PPSL, under FDI rules.
On November 26, the company said that the RBI had rejected its application for a PA license. The central bank said that PPSL was required to re-submit its PA application within 120 calendar days.
Other directions included seeking necessary approval for past downward investment from Paytm into PPSL to comply with the government’s foreign direct investment (FDI) guidelines, and not onboarding new online merchants.
As per RBI’s letter, on receipt of approval from the government, PPSL will have fifteen days to submit the application seeking authorisation for PPSL to operate as an online PA. However, if any adverse decision is taken by the government, then the same shall be informed to RBI immediately.
During this process, PPSL can continue with its online payment aggregation business for existing partners, without onboarding any new merchants.
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“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 company stated.
Furthermore, for the company’s offline business, OCL can continue to onboard new merchants and offer them payment services – including All-in-One QR, Soundbox, Card Machines, etc
Paytm last week announced the launch of its new technology platform, built with 100 per cent indigenously developed technology, in a bid to promote ‘Atmanirbhar Bharat’.
The upgraded platform, the company says, will be able to handle up to ten times the transactions than its previous iteration, making payments “superfast, secure and seamless.”
