RBI asks Paytm Payments Services to re-apply for payment aggregator licence | The Financial Express

RBI asks Paytm Payments Services to re-apply for payment aggregator licence

RBI has also asked Paytm Payments Services to not onboard new online merchants, the release said.

RBI asks Paytm Payments Services to re-apply for payment aggregator licence
The company stated that with the Paytm ABHA Health Locker, a user can upload documents like a health insurance policy, diagnostic reports, prescriptions, medicine bills, COVID vaccine Certificates, PMJAY Cards to name a few. (File)

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.

Also Read: RBI pauses onboarding of online merchants by Paytm Payments Services; firm says no material impact on business

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.

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First published on: 27-11-2022 at 06:20 IST