paytm payment aggregator license: RBI asks Paytm to re-apply for a payment aggregator license; must comply with FDI guidelines

Reserve Bank of India (RBI) Rejected Paytm’s Application for Digital Payments and Financial Services payment aggregator license and asked to reapply within the next 120 days. Subsidiary of One97 Communications, Paytm Payments Services Limited (PPSL) has applied for a payment aggregator license with a central bank. RBI sent Paytm “obtain the necessary approval for the company’s past investment in PPSL in accordance with FDI guidelines.”

The central bank also ordered the payment firm not to connect new online merchants.

The company said the development does not have a material impact on its business and revenues, as the RBI message only applies to new online merchant registrations.

Paytm has confirmed that it can continue to connect new offline merchants and offer them payment services, including All-in-One QR, Soundbox, Card Machines and more. “Similarly, PPSL may continue to do business with existing online merchants for whom the services will remain unchanged. We hope to obtain the necessary approvals in a timely manner and reapply,” Paytm added.

RBI has rejected an application for a MobiKwik PA license to compete with Paytm.a message that Mobikwik resubmitted.

Discover stories that interest you



In March,
RBI has banned Paytm Payments Bank from attracting new customers. “Attracting new customers to Paytm Payments Bank Ltd will be subject to a special authorization to be granted by the Reserve Bank of India (RBI) after examining (the) IT auditors report,” the central bank said in a March statement.

The ban continues to apply. Actually in his
September Quarterly ProfitPaytm said it still does not have a clear timeline for when it expects the banking regulator to allow it to open new payment bank accounts.

In March 2020, RBI released its payment aggregator platform. which stated that all payment gateways must obtain a license for in-flight merchants and offer payment services to them.

So far, at least 185 fintech companies, including well-known companies such as Cred, Razorpay and PhonePe, have applied for a license.

Over the past few months, RBI has been making presentations to payment gateway vendors and other fintech firms that have applied for a license. However, he has been strict in evaluating these apps, as ET’s sources have previously told.

Paytm shares hit an all-time low, dropping to Rs 465., which is more than 70% below its price a year ago. Jio Financial Services Reliance “could pose significant growth and market share risk” for players such as Paytm and Bajaj Finance Ltd, Macquarie analysts led by Suresh Ganapati wrote in a note earlier this week.

In May
the Macquarie report set a target price of Rs 450 per share.. Paytm’s IPO price was Rs 2,150 per share when it was listed last November.

Stay on top technology as well as startup news it is important. subscribe to our daily newsletter with the latest and must-read tech news delivered straight to your inbox.