It clarified that, for offline business, One97 Communications can continue to onboard new merchants and offer them payment services including all-in-one QR, soundbox, card machines, et cetera.
New Delhi: The Reserve Bank of India (RBI) has allowed Paytm Payment Services Ltd (PPSL) an extension to resubmit its application for a payment aggregator (PA) licence, said One97 Communications, the parent firm of PPSL, in a regulatory filing on 26 March 2023.
The filing also said that the central bank 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.
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“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.
As per the company, the latest developments will have “no material impact” on PPSL’s business and revenues, it also added that the communication from RBI is applicable “only to onboarding of new online merchants and we can continue to provide payment services to our existing online merchants”.
It clarified that, for offline business, One97 Communications can continue to onboard new merchants and offer them payment services including all-in-one QR, soundbox, card machines, et cetera.
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WHAT ARE PAYMENT AGGREGATORS?
Online payment aggregators are those entities that on-board digital merchants , and receive payment from the customers on their behalf after getting licence from the payment regulator. The RBI on 17 March 2020 and 31 March 2021 had issued circulars on “Guidelines on Regulation of Payment Aggregators and Payment Gateways”.
On 16 February 2023, India.com reported that the PA licence application of Paytm Payments Services Limited has been returned by the central bank along with three other applications. The applications of Freecharge Payment Technologies Private Limited, PayU Payments Private Limited, and Tapits Technologies Private Limited have also been returned.
