Reserve Bank of India grants Paytm regulator extension for PA license

The fintech company is still awaiting approval from the Government of India (GoI).

Paytm Payments Services Limited, an India-based financial solutions firm, submitted an application for a payment aggregator (PA) license last 26 November 2022.

“We would like to inform you that we have recently received an extension of time from the Reserve Bank of India (RBI) for the re-submission of the application. The letter from RBI says that [Paytm] can continue with the Online Payment Aggregation business, while it awaits approval from the Government of India for past investment from One 97 Communications Limited (OCL) into PPSL as per [foreign direct investment] guidelines,” Paytm said in a bourse filing.

The license grants a business the to give payment services or solutions to merchants for customer payments to push through.

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The central bank of India said Paytm has 15 days to submit the application to operate an online PA.

In the meantime, Paytm can perform all services in its online payment aggregation platform for existing business customers just as long as no new merchants will be on-boarded.

The fintech firm said this will have no material impact on the company’s revenue and businesses since the central bank specified the case to only apply to the on-boarding of new online sellers.

Paytm’s parent company, OCL, can resume receiving new merchants and offer the same payment services which include All-in-one QR, Soundbox, Card Machines, and others.