The Reserve Bank of India (RBI) has granted Paytm Payment Services Ltd (PPSL) an extension to resubmit its application for a payment aggregator (PA) licence, the parent company of PPSL, in a regulatory filing on March 26.
the central bank has additionally permitted PPSL to keep running as a payment aggregator while it waits for government confirmation of previous investments it received from One97 Communications.
‘PPSL will have 15 days after receiving GoI (Government of India) approval to file the application seeking authorization for PPSL to function as an online PA. One97 Communications warned the stock exchanges that if the GoI made any unfavorable decisions, they must be immediately communicated to the RBI.
Without adding any new merchants, it continued, “PPSL can continue with its online payment aggregation business for existing partners during this process.”
The most recent changes will not “materially” affect PPSL’s operations or earnings, according to the company, which also noted that the RBI notification only applies to “onboarding of new online merchants” and that “we can continue to provide payment services to our existing online merchants.”