RBI to Paytm: Reapply for payment aggregator licence within 120 days

The Reserve Bank of India (RBI) asked Paytm to reapply for a payment aggregator licence within 120 days in response to its initial application. Digital payments and financial services company One97 Communications’ subsidiary Paytm Payments Services Ltd (PPSL) is seeking the licence.

One97 Communications told stock exchanges on Saturday that the central bank directed Paytm to “seek necessary approval for past downward investment from the company into PPSL, to comply with FDI guidelines”. The RBI has also directed the payments firm to pause the signing up of new online merchants.