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RBI asks Paytm Payment Services to stop onboarding online merchants; asks to reapply for licence as payment aggregator Paytm

RBI asks Paytm Payment Services to stop onboarding online merchants; asks to reapply for licence as payment aggregator

India Blooms News Service | @indiablooms | 27 Nov 2022, 03:21 pm

Mumbai/IBNS: Paytm on Saturday informed the bourses that the Reserve Bank of India has ordered its subsidiary Paytm Payment Services Ltd (PPSL) not to onboard new online merchants, reported media.

PPSL had applied for authorisation to provide payment aggregator (PA) services for online merchants.

The Central bank asked to get the necessary approval for past downward investment from Paytm into PPSL to comply with the government’s foreign direct investment (FDI) guidelines,

Paytm meanwhile responded that its application is "not rejected".

According to a Moneycontrol report, a spokesperson for the company said, “The RBI has not rejected our application, but has simply asked us to reapply in 120 days. We are taking all the necessary steps and are hopeful of getting the required approvals soon.”

The central bank said that PPSL is required to re-submit its PA application within 120 calendar days.

“This has no material impact on our business and revenues since the communication from RBI is applicable only to the onboarding of new online merchants. We can continue to onboard new offline merchants and offer them payment services including all-in-one QR, Soundbox, and card machines,” the statement said.

“We are hopeful of receiving the necessary approvals in a timely manner and resubmitting the application,” the company said.