The Reserve Bank of India (RBI) has asked Paytm Payments Services to resubmit the application for a payment aggregator licence within 120 days, the payments services company’s parent One97 Communications said in a press release late on Friday.
A letter from RBI has asked the payments services company to seek regulatory approval for past downward investment from One97 Communications to Paytm Payments Services to comply with foreign direct investment norms.
RBI has also asked Paytm Payments Services to not onboard new online merchants, the release said.
“This has no material impact on our business and revenues, since the communication from RBI is applicable only to onboarding of new online merchants,” the release said, adding: “We can continue to onboard new offline merchants and offer them payment services including All-in-One QR, Soundbox, Card Machines, etc.”
According to RBI norms, all payment gateways must obtain a license to onboard merchants and offer payment services.
In March, RBI had barred One97 Communications’ subsidiary Paytm Payments Bank from onboarding new customers.