Key Points of Paytm Payment Services allowed RBI Extension for PA License Reapplication:
- Paytm Payment Services Ltd (PPSL) has been granted an extension to resubmit its application for a payment aggregator (PA) license by the Reserve Bank of India (RBI).
- PPSL can continue its operations as a payment aggregator while waiting for government approval on past investments received from One97 Communications, its parent company.
- PPSL has 15 days to submit the application seeking authorisation for PPSL to operate as an online PA after receiving approval from the Government of India.
- If the Government of India makes any adverse decisions, the same will be communicated to the RBI immediately.
- The latest developments will not have a material impact on PPSL’s business and revenues, as the company can continue with its online payment aggregation business for existing partners without onboarding any new merchants.
- One97 Communications, the parent company of PPSL, can continue to onboard new merchants and offer them payment services for offline business, including all-in-one QR, soundbox, card machines, etc.
- The RBI mandated that all PAs shall be authorised by it under the new set of guidelines issued in March 2020.
- Non-bank companies offering PA services were instructed by the regulator to apply for authorisation by June 30, 2021, which was later extended to September 30, 2021.
Details of Paytm Payment Services RBI Extension for PA License Reapplication:
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) license. According to a regulatory filing by One97 Communications, the parent company of PPSL, the central bank has allowed PPSL to continue its operations as a payment aggregator while waiting for approval from the government on past investments received from One97 Communications.
PPSL will have 15 days to submit the application seeking authorisation for PPSL to operate as an online PA, on receipt of approval from the Government of India, according to the RBI’s letter. However, if the Government of India makes any adverse decisions, the same will be communicated to the RBI immediately.
One97 Communications stated that the latest developments will have “no material impact” on PPSL’s business and revenues. The company can continue with its online payment aggregation business for existing partners without onboarding any new merchants.
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 should be noted that the RBI had mandated that all PAs shall be authorised by it under the new set of guidelines issued in March 2020. The regulator instructed non-bank companies offering PA services to apply for authorisation by June 30, 2021, which was later extended to September 30, 2021.
About Paytm Payment Services:
Paytm spearheaded the Digital Revolution in India, establishing itself as the country’s premier payments app. Over 20 million merchants and businesses rely on Paytm to enable digital payment acceptance. This is due to the fact that Paytm boasts a user base of over 300 million Indians who utilize the app to make payments at their preferred stores.
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