Paytm Payment Services Gets RBI Extension To Resubmit Payment Aggregator Licence Application

The RBI 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

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, according to the RBI guidelines. ( Image Source :Getty )

One97 Communications, the parent company of 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. One97 Communications said in a regulatory filing on Sunday.

The RBI 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 the RBI is applicable “only to onboarding of new online merchants and we can continue to provide payment services to our existing online merchants”. For offline business, One97 Communications can also continue to onboard new merchants and offer them payment services, including all-in-one QR, soundbox, card machines, etc, it clarified.

The central bank 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.

Earlier this month, Paytm Payments Bank, a part of mobile payment company Paytm, has enabled the UPI LITE feature for its users for faster UPI payments for multiple small-value UPI transactions.

At 1 pm, shares of On 97 Communications were trading at Rs 633.45, up 2.28 per cent on the BSE on Monday.