Paytm Gets More Time To Resubmit Payment Aggregator Licence Application

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Paytm has received an extension from the Reserve Bank of India (RBI) to resubmit its application for a payment aggregator licence. The RBI had previously asked for details on shareholding in its wholly-owned subsidiary, Paytm Payments Services. The extension was granted because the RBI has not yet received an answer from the government on One97 Communication Limited’s investments into PPSL. The RBI said that it would give Paytm 15 more days to reapply for the licence once it has government approval.

Paytm is backed by Ant Group, which is looking to reduce its holding in the company in order to comply with SEBI regulations on shareholding. It seems that Paytm has received an extension from the Reserve Bank of India (RBI) to resubmit its application for a payment aggregator (PA) license. Paytm has requested an extension of the 120-day deadline to resubmit its application since the government has not yet responded to One97 Communication Limited’s (OCL) investments in Paytm Payments Services Limited (PPSL).

Paytm is backed by Ant Group, which holds more than a 25% stake in the company, and the government is investigating whether the investments made by Paytm into PPSL were compliant with FDI norms. If the government makes any adverse decisions, Paytm has to inform the RBI immediately, and Paytm Payments Bank cannot onboard any new merchants during this process. However, this does not have a material impact on its business as it can still provide payment services to existing online merchants. Meanwhile, the RBI has given in-principle approval to 32 payment aggregators, including entities competing with Paytm Payments Bank. Finally, Paytm’s share price opened at INR 623.45 apiece on March 27, up slightly from the previous close of INR 619.45. However, the share price remains 71% lower than the IPO price of INR 2,150 apiece.