Paytm dips 4% intra-day as RBI asks arm not to onboard new online merchants

Shares of One 97 Communications, the operator of India’s largest digital-payments provider Paytm, dipped 4 per cent to Rs 444.35 on the BSE in Monday’s intra-day trade after the Reserve Bank of India (RBI) asked the company’s 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 aggregator’s license in the next 120 days.