- Our association with leading online merchants remains unimpacted, services to continue as it is
- Paytm can onboard new offline merchants and offer them payment services such as All-in-One QR, Soundbox, Card Machines, etc
We would like to share that our 100% subsidiary, Paytm Payment Services Limited (“PPSL”), has recently received an extension of time from the Reserve Bank of India (RBI) for the resubmission of Online Payment Aggregator (PA) license application. As per our earlier filing dated November 26, 2022, about “Update on PA license: Paytm Payments Services Limited to resubmit application to RBI”, PPSL had to resubmit the application for PA services within 120 calendar days.
You can access our latest exchange filing here: https://www.bseindia.com/xml-data/corpfiling/AttachLive/8189d2d4-8ebc-4c80-ab29-a739178cc46e.pdf
The letter from RBI says that PPSL can continue with the Online Payment Aggregation business, while it awaits approval from the Government of India (‘GoI’) for past investment from One 97 Communications Ltd. (OCL) into PPSL as per FDI Guidelines.
As per RBI’s letter, on receipt of approval from GoI, PPSL will have fifteen days to submit the application seeking authorization for PPSL to operate as an online PA. However, if any adverse decision is taken by the GoI, then the same shall be informed to RBI immediately. During this process, PPSL can continue with its online payment aggregation business for existing partners, without onboarding any new merchants.
This continues to have no material impact on our business and revenues since the communication from RBI is applicable only to the onboarding of new online merchants and we can continue to provide payment services to our existing online merchants. Furthermore, for offline business, OCL can continue to onboard new merchants and offer them payment services including All-in-One QR, Soundbox, Card Machines, etc.
There are no observations in the letter other than what is mentioned above. We are hopeful of receiving the necessary approvals in a timely manner.
We want to reiterate to our customers, partners, and shareholders that we are committed to staying a truly compliant organization, and remaining aligned with our business growth and profitability goals.