Indian fintech Paytm is allowed by the country’s banking regulator to reapply for a payment aggregator licence after having the first one denied
Paytm Payments Services Ltd has received an extension from the Reserve Bank of India (RBI) to apply for a payment aggregator licence again. The company aims to submit a new application in about 15 days, according to the Sunday announcement.
Paytm Payments Services Ltd is a wholly owned subsidiary of One 97 Communications. Last November, India’s banking regulator declined a payment aggregator licence for the Paytm parent unit.
Paytm initially had 120 calendar days to resubmit the application to RBI. However, the most recent extension allowed the company to have additional 15 days to prepare for re-application. The fintech aims to use this opportunity and remains hopeful of getting the necessary approvals.
RBI explained that Paytm could continue with the online payment aggregation business for existing partners, without onboarding any new online merchants. Besides, the fintech may proceed with its offline business. Thus, One 97 Communications can continue to onboard new merchants and offer them offline payment services including All-in-One QR, Soundbox, Card Machines, etc.
Meanwhile, the company would be awaiting approval from the Government of India for the past investment from One 97 Communications as per FDI Guidelines to continue with the re-application process.
In case Paytm doesn’t receive approval from the government, the same shall be informed to RBI immediately.
In January, Chinese e-commerce giant Alibaba Group sold a 3.1% stake in Paytm. The transaction was part of the implementation of the Indian company’s decision to buy back shares. Namely, the management of Paytm intended to buy back securities totalling $ 103 million.