Paytm gets extension to resubmit payment aggregator licence application

The Reserve Bank of India (RBI) has given Paytm Payments Services an extension to resubmit its application for a payment aggregator licence, parent company One97 Communications said in an exchange filing on Sunday.

The central bank has allowed the platform to continue its payment aggregation business while awaiting government approval for past investment from One97 Communications into Paytm Payments Services as per Foreign Direct Investment (FDI) norms, the filing said.

Once the government approves the investment, Paytm Payments Services will have 15 days to resubmit its application to RBI. “…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,” the filing said.

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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. Furthermore, for offline business, One97 Communications can continue to onboard new merchants and offer them payment services including All-in-One QR, Soundbox, Card Machines, etc,” it added.

Paytm Payments Services is a 100% subsidiary of One97 Communications. In November, the central bank had asked Paytm Payments Services to resubmit its payment aggregator licence application seeking necessary approval for past downward investment from One97 Communications.