Paytm Payments Services Ltd, a Fintech company, has been given an additional 15 days by the Reserve Bank of India (RBI) to reapply for a license to operate as a payment aggregator. The company announced this extension in a statement on Sunday. During this time, Paytm Payment Services can continue its online payment aggregation business for existing partners without onboarding any new merchants. It is important to note that Paytm Payment Services had to resubmit the application for Payment Aggregators services within 120 calendar days.
A payment aggregator license is a permit granted by a regulatory authority to a company that acts as an intermediary between a merchant and a customer in a payment transaction. Payment aggregators collect payments from customers on behalf of merchants and then transfer the funds to the merchant’s account after a specific time. Paytm Payments Services Ltd is a significant player in India’s online payments business and is a wholly-owned subsidiary of One 97 Communications, which owns the popular Paytm brand.
The company’s notification on Sunday stated that ‘PPSL can continue to serve existing partners. We proudly lead with our 100% indigenous technology.’ The extension has ‘no material impact on our business and revenues,’ according to Paytm, since the communication from RBI is only applicable to onboarding new online merchants, and they can continue to provide payment services to their existing online merchants.
The Reserve Bank of India published a list of applicants who have been given in-principle authorization to function as payment aggregators on 15 February, and some businesses, including Paytm Payment Services, were requested to reapply at that time. In November, India’s banking regulator rejected the One 97 Communications business’s application for a payment aggregator license.
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