The Reserve Bank of India (RBI) has rejected Paytm’s application to provide payment aggregator service for online merchants.
Paytm Payments Services Limited (PPSL), a 100% subsidiary of , now has to resubmit an application for authorisation to provide payment aggregator service within 120 calendar days, the financial services firm said in a statement on Saturday.
The company will further seek necessary approval for downward investment in to PPSL in order to comply with RBI guidelines. It will not onboard new merchants during this process.
The subsidiary will continue doing business with existing merchants for whom the services will remain unaffected, the company noted.
“This has no material impact on our business and revenues, since the communication from RBI is applicable only to onboarding of new online merchants. We can continue to onboard new offline merchants and offer them payment services including All-in-One QR, Soundbox, Card Machines, etc.,” Paytm noted in a filing with BSE.
The company also noted that it is hopeful of receiving the necessary approvals in a timely manner after resubmitting the application.
