The Reserve Bank of India (RBI) has rejected the application of Paytm Payments Services (PPSL) for licence to operate as a payment aggregator, the company informed the bourses on November 26.
The fintech company’s subsidiary had applied for authorisation to provide payment aggregator (PA) services for online merchants.
The central bank said that PPSL is required to re-submit its PA application within 120 calendar days. Other steps include seeking necessary approval for past downward investment from Paytm into PPSL to comply with the government’s foreign direct investment (FDI) guidelines, and not onboarding new online merchants.
The company noted that no other “material observations” were made by the RBI, in its letter.