Paytm on Saturday notified the stock exchanges that the Reserve Bank of India (RBI) has asked its subsidiary — Paytm Payment Services Ltd (PPSL) — not to onboard new online merchants.
This was in response to an application the company had filed for a payment aggregators license.
In a letter, the central bank has asked the company to seek necessary approval for past downward investments from Paytm to the company to comply with FDI guidelines.
After complying with the two steps prescribed by the regulator, PPSL can apply for a payment aggregators license in the next 120 days.
“This has no material impact on our business and revenues, since the communication from RBI is applicable only to onboarding of new online merchants”, Paytm said in the exchange notification.
We can continue to onboard new offline merchants and offer them payment services including All-in-One QR, Soundbox, Card Machines, etc, the company said.
Meanwhile, PPSL can continue to do business with existing online merchants, for whom the services will remain unaffected.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Nov 26 2022 | 10:24 AM IST