Paytm Payment Services Limited (PPSL) has received an extension from the Reserve Bank of India (RBI) for re-submission of application for Paytm Aggregator (PA) license. PPSL’s parent company One97 Communications (OCL) has given this information in a regulatory filing on 26 March.
The exchange filing said the central bank has approved PPSL to continue its business as a payment aggregator while it awaits government approval for the previous investment from OCL in PPSL as per FDI norms.
Application has to be submitted in 15 days
One97 Communications informed the stock exchanges that as per RBI’s letter, PPSL will have 15 days to submit the payment aggregator application upon receipt of approval from the Government of India.
However, if an adverse decision is taken by the Government of India, the same will be communicated to RBI immediately. During this process, PPSL may continue with its online payment aggregation business for existing partners without onboarding any new merchants.
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It has been said that this will not have any material impact on the business and revenue of PPSL.
The company claimed that the communication from RBI is applicable only for the onboarding of new online merchants and we can continue to provide payment services to our existing online merchants.
In addition, for offline business, One97 Communications can continue to onboard new merchants and offer them payment services including all-in-one QR, soundbox, card machine etc.
Notably, the RBI had mandated that all PAs be authorized by it under the new set of guidelines issued in March 2020. For this, the regulator had directed non-bank companies offering PA services to apply for authorization by June 30, 2021.
Later it was increased to September 30, 2021.