- Our association with leading online merchants remains unimpacted, services to continue as it is
We would like to share that our 100% subsidiary, Paytm Payment Services Limited (“PPSL”) has received a letter from RBI in response to an application from PPSL for the authorization to provide payment aggregator and payment gateway services (“PA/PG”) for online merchants. We would like to emphasise that this not a rejection of our application by the RBI as the central bank has directed us to reapply in 120 days. We are taking all necessary steps & are hopeful of getting the required approvals soon.
You can also access our exchange filing here: https://www.bseindia.com/xml-data/corpfiling/AttachLive/be4fae6e-e497-4d02-8ec8-b5d460bc2e2c.pdf
As per the letter, PPSL is required to take the following steps and resubmit the PA application within 120 calendar days:
1. Seek necessary approval for past downward investment from the Company in to PPSL, to comply with FDI Guidelines
2. Not onboard new online merchants
There are no material observations other than what is mentioned above. Here we want to highlight that this has no material impact on our business and revenues as we will continue to service our existing online merchants. We can continue to onboard new offline merchants and offer them payment services including All-in-One QR, Soundbox, Card Machines, etc.
We are one of the biggest player in the online payments business in India. We are hopeful of receiving the necessary approvals in a timely manner and resubmitting the application. Our large existing clients base, from the biggest Indian e-commerce company to the largest ride hailing organization – all of whom will remain unimpacted with this. We can continue to work with banks for payment gateway services.
We want to reiterate to our customers, partners and shareholders that we are committed to staying a truly compliant organisation, and remain aligned to our business growth and profitability goals