RBI allows Paytm Payments to continue online Payment Aggregator business
The Reserve Bank of India (RBI) has granted Paytm Payments Services Limited (PPSL) an extension of time to resubmit its application for a Payment Aggregator (PA) license.
The feature enables PPSL to proceed its online payment aggregation business while it awaits authorization from the Government of India (GoI) for previous investments from One 97 Communications Limited (OCL) into PPSL in accordance with FDI guidelines.
After receiving approval from the GoI, PPSL must submit its application for authorization to operate as an online PA within 15 days. If the GoI makes an unfavorable decision, the PPSL must immediately notify the RBI. PPSL is permitted to continue its online payment aggregation business for existing partners during this process, but cannot accept new merchants.
Paytm’s application for a payment aggregator license was rejected by the RBI in November of last year, and they were asked to reapply after meeting specific requirements within 120 days.
The extension of time for resubmitting the application has no effect on PPSL’s business or revenues. The RBI communication only applies to onboarding new online merchants; PPSL can continue to provide payment services to its existing online merchants.