Paytm Payments Services (PPSL) will want the federal government’s acclaim for investments from its mum or dad One97 Communications to get a fee aggregator license from the RBI,
In November 2022, whilst granting licenses to fee aggregators, the RBI requested Paytm to resubmit its utility inside 120 days after taking the important steps. The central financial institution had additionally barred it from onboarding new on-line traders.
Antfin (Netherlands) Holdings, an associate of China’s alibaba Group, holds as regards to a 25% stake within the Paytm mum or dad. Last month, Alibaba exited its direct protecting within the corporate by way of promoting a three.3% stake. Paytm has knowledgeable exchanges that the RBI has prolonged the timeline for filing the appliance.
“The letter from RBI says that PPSL can continue with the online payment aggregation business, while it awaits approval from the government for past investment from One97 Communications into PPSL under FDI guideline,” Paytm mentioned.
According to the RBI’s letter, on receipt of approval from the federal government, PPSL can have 15 days to publish the appliance in the hunt for authorization for PPSL to function as an internet fee aggregator. However, if any antagonistic choice is taken by way of the federal government, then the similar will likely be knowledgeable to the RBI instantly. During this procedure, PPSL can proceed with its on-line fee aggregation industry for current companions with out onboarding any new traders.
The submitting additionally mentioned that the RBI restrictions are acceptable handiest to the onboarding of latest on-line traders, and we will proceed to supply fee services and products to our current on-line traders. Furthermore, for offline industry, One97 Communications can proceed to onboard new traders and be offering them fee services and products.
In November 2022, whilst granting licenses to fee aggregators, the RBI requested Paytm to resubmit its utility inside 120 days after taking the important steps. The central financial institution had additionally barred it from onboarding new on-line traders.
Antfin (Netherlands) Holdings, an associate of China’s alibaba Group, holds as regards to a 25% stake within the Paytm mum or dad. Last month, Alibaba exited its direct protecting within the corporate by way of promoting a three.3% stake. Paytm has knowledgeable exchanges that the RBI has prolonged the timeline for filing the appliance.
“The letter from RBI says that PPSL can continue with the online payment aggregation business, while it awaits approval from the government for past investment from One97 Communications into PPSL under FDI guideline,” Paytm mentioned.
According to the RBI’s letter, on receipt of approval from the federal government, PPSL can have 15 days to publish the appliance in the hunt for authorization for PPSL to function as an internet fee aggregator. However, if any antagonistic choice is taken by way of the federal government, then the similar will likely be knowledgeable to the RBI instantly. During this procedure, PPSL can proceed with its on-line fee aggregation industry for current companions with out onboarding any new traders.
The submitting additionally mentioned that the RBI restrictions are acceptable handiest to the onboarding of latest on-line traders, and we will proceed to supply fee services and products to our current on-line traders. Furthermore, for offline industry, One97 Communications can proceed to onboard new traders and be offering them fee services and products.