Paytm Payment Services Ltd (PPSL) has received an extension from the Reserve Bank of India (RBI) to resubmit its application for a payment aggregator (PA) licence, said One97 Communications, the parent firm of PPSL, in a regulatory filing on March 26.
The central bank has also allowed PPSL to continue its operation as a payment aggregator while it awaits approval from the government on the past investments received from One97 Communications, the exchange filing added.
‘As per RBI’s letter, on receipt of approval from GoI (Government of India), PPSL will have 15 days to submit the application seeking authorisation for PPSL to operate as an online PA. However, if any adverse decision is taken by the GoI, then the same shall be informed to RBI immediately,” One97 Communications informed the stock exchanges.
“During this process, PPSL can continue with its online payment aggregation business for existing partners, without onboarding any
new merchants,” it added.
The latest developments will have “no material impact” on PPSL's business and revenues, the company claimed, adding that 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”.
Furthermore, for offline business, One97 Communications can continue to onboard new merchants and offer them payment services including all-in-one QR, soundbox, card machines, etc, it clarified.
Notably, the RBI had mandated that all PAs shall be authorised by it, under the new set of guidelines issued in March 2020. For this, the regulator instructed non-bank companies offering PA services to apply for authorisation by June 30, 2021, which was later pushed to September 30, 2021.