PayTM gets Extension from RBI for Payment of Aggregator License
Ten News Network
New Delhi (India), 27th March 2023: The Reserve Bank of India gave Paytm Payments Services Limited (PPSL) an increase of time to resubmit its application for a licence as a payment aggregator (PA), the company said on Sunday.
According to FDI regulations, the RBI stated in a statement that PPSL may continue operating its online payment aggregation business while it waits for the Centre to approve earlier investments made into PPSL by its parent company One97 Communication (OCL).
The business announced on November 26 that the RBI had turned down its request for a PA licence. According to the central bank, PPSL must resubmit its PA registration within 120 calendar days.
Other instructions included not onboarding new online merchants and obtaining the required approval for Paytm’s previous downward investment into PPSL in order to comply with the government’s foreign direct investment (FDI) guidelines.
According to the letter from RBI, PPSL will have fifteen days after receiving government approval to submit the application requesting permission for PPSL to function as an online PA. However, the RBI must be notified right away if the government makes any unfavourable decisions.
PPSL can continue operating its online payment aggregation service for current partners during this time without adding any new merchants.
In an effort to promote “Atmanirbhar Bharat,” Paytm last week announced the debut of its new technology platform, which was created entirely with domestically produced technology.
The business claims that the upgraded platform will make payments “superfast, secure, and seamless” by being able to process up to ten times as many transactions as its previous version.