The Reserve Bank of India (RBI) has extended the deadline for Paytm Payments Services (PPSL) to resubmit its application for authorisation to provide payment aggregator (PA) services for online merchants.
In November last year, RBI had said PPSL, a wholly-owned subsidiary of One97 Communications (OCL), would have to resubmit the application for PA services within 120 calendar days. With the extension, PPSL can continue its Online Payment Aggregation business, while it awaits approval from the Centre for past investment from OCL in line with FDI guidelines.
Also read: RBI returns PA applications of Paytm, Freecharge, PayU
According to RBI’s letter, on receipt of approval from the Centre, PPSL will have 15 days to submit the application seeking authorisation to operate as an online PA, Paytm said in a filing with stock exchanges.
However, if the Centre takes an adverse decision, the central bank should be informed immediately, theletter stipulated.
During this process, PPSL can continue with its online payment aggregation business for existing partners, without on-boarding any new merchants.
“This continues to have no material impact on our business and revenues, since the communication from RBI is applicable only to on-boarding of new online merchants and we can continue to provide payment services to our existing online merchants. Furthermore, for offline business, OCL can continue to on-board new merchants and offer them payment services, including All-in-One QR, Soundbox, Card Machines, etc,” Paytm said in the filing with exchanges on Sunday.
Also read: Paytm’s loan disbursals up 327% in January 2023, number of loans up 103%
“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.”
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