India’s central bank and regulatory authority has given Fintech company Paytm Payments Services Ltd a further 15 days to reapply for a licence to operate as a payment aggregator, the company announced on Sunday.
“Our subsidiary Paytm Payment Services has received an extension from RBI for resubmission of PA license application. PPSL can continue to serve existing partners. We proudly lead with our 100% indigenous technology,” Paytm said in a statement.
Our subsidiary Paytm Payment Services has received extension from RBI for resubmission of PA license application. PPSL can continue to serve existing partners. We proudly lead with our 100% indigenous technology.https://t.co/E4WQTGWnS0
— Paytm (@Paytm) March 26, 2023
The company in its statement said that during this time, Paytm Payment Services can continue with its online payment aggregation business for existing partners, without onboarding any new merchants.
It is important to note that Paytm Payment Services had to resubmit the application for Payment Aggregators services within 120 calendar days. The Reserve Bank of India on 15 February published a list of applicants who have been given in-principle authorisation to function as payment aggregators. At the time, some businesses including Paytm Payment Services had been requested to reapply.
“In this regard, we would like to inform you that we have recently received an extension of time from RBI for resubmission of the application,” the company’s notification said on Sunday.
A payment aggregator license is a permit granted by a regulatory authority to a company that acts as an intermediary between a merchant and a customer in a payment transaction. Payment aggregators collect payments from customers on behalf of merchants and then transfer the funds to the merchant’s account after a specific time.
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Paytm Payments Services Ltd is one of the biggest players in the online payments business in India and is a wholly owned subsidiary of One 97 Communications. The One 97 Communications business, which owns the well-known Paytm brand, had its application for a payment aggregator licence rejected by India’s banking regulator in November.
In the latest update on the extension given by RBI, Paytm said 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.”
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