Monday, May 27, 2024

Paytm gets 15 days to file aggregator licence plea

MUMBAI : The Reserve Bank of India (RBI) has extended the deadline for Paytm Payments Services Ltd to reapply for a payment aggregator licence, but did not lift the restrictions on enrolling new online merchants, parent company One 97 Communications Ltd said on Sunday.

In November, RBI asked the company to resubmit its application within 120 days of seeking approval for earlier downward investments from Paytm Payments Services to comply with foreign direct investment (FDI) norms, besides barring it from onboarding online merchants.

“…we would like to inform you that we have received an extension of time from RBI for resubmission of application. The letter from RBI says Paytm Payments Services Ltd can continue with online payment aggregation business, while it awaits approval from the government for past investments from One 97 Communications in PPSL as per FDI guidelines,” the company said.

According to Reserve Bank’s letter, on receipt of approval from the government, Paytm Payments Serivices will have 15 days to submit the application seeking authorization to operate as an online payment aggregator.

“However, if any adverse decision is taken by the government, then it shall be informed to RBI immediately,” RBI said in the letter.

It said during this process, Paytm can continue with its online payment aggregation business for existing partners, without enroling new merchants.

This, the firm said, does not have any material impact on its business and revenue, since the communication from RBI is applicable only to onboarding of new online merchants and it can continue to provide payments services to existing merchant partners.

Furthermore, for its offline business, it can continue to onboard new merchants and offer them payment services. such as all-in-one QR, soundbox and card machines, among others.

“There are no observations in the letter other than what is mentioned above. We are hopeful of receiving the necessary approvals in a timely manner,” it added.

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