RBI rejects Paytm’s payment aggregator licence application, requests resubmission in 120 days
In a regulatory filing, Paytm Payments Services Limited said that the Reserve Bank of India (RBI) denied its request for a license to work as a payment aggregator in India.
Now, the central bank has asked PPSL to resubmit its application for payment aggregator (PA) services within four months, or 120 calendar days. It should be noted that One97 Communications (OCL), which owns the Paytm brand, had planned to give Paytm Payments Services (PPSL) its payment aggregator services business in December 2020 in order to follow the Reserve Bank of India’s rules for payment aggregators (PAs).
The fintech company resubmitted the required documents in September 2021. The RBI has now responded to the application.
The fintech company willIn September 2021, the fintech company resubmitted the necessary documentation. The RBI has not responded to the application at this time. To comply with the country’s foreign direct investment (FDI) guidelines, the fintech company will need clearance for a previous downward investment made by One97 Communications Ltd. (OCL) into PPSL. The fintech company will not accept new online merchants until the approvals are granted. require necessary approval for past downward investment from One97 Communications Ltd (OCL) into PPSL to comply with the country’s foreign direct investment (FDI) guidelines. Until the approvals are cleared, the fintech company will not onboard new online merchants.
The business confirmed that RBI has made no additional “material observations.”
“This has no meaningful effect on our business or revenue, as the RBI’s announcement solely applies to the onboarding of new online merchants.” “We can keep adding new offline merchants and giving them payment options like all-in-one QR, Soundbox, and card machines,” “PPSL’s statement said.
According to the RBI’s PA guidelines, a single business cannot continue to offer both e-commerce marketplace and payment aggregator services. These payment aggregator services must be separated from e-commerce marketplace operations.
A payment aggregator lets merchants and e-commerce sites accept payments from customers through a number of different payment methods. With these kinds of payment aggregator services, merchants don’t have to set up their own payment integration system. Services like cash and check transactions, online and offline touchpoints, and more are all part of this.
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