16.1 C
Tuesday, January 31, 2023
Home Gadgets RBI asks Paytm to reapply for payment aggregator licence; needs to comply...

RBI asks Paytm to reapply for payment aggregator licence; needs to comply with FDI guidelines

The Reserve Bank of India (RBI) has rejected digital funds and monetary companies Paytm’s software for a payment aggregator licence and requested for it to reapply inside the subsequent 120 days. One97 Communications’ subsidiary, Paytm Funds Providers Restricted (PPSL), had utilized for a funds aggregator licence with the central financial institution. RBI has directed Paytm to “search vital approval for previous downward funding from the corporate into PPSL, to adjust to FDI tips”.

The central financial institution has additionally directed the cost agency to not onboard new on-line retailers.

The corporate mentioned that the event has no materials influence on its enterprise and revenues because the communication from RBI is relevant solely to onboarding of latest on-line retailers.

Paytm reiterated that it could possibly proceed to onboard new offline retailers and supply them cost companies together with All-in-One QR, Soundbox, Card Machines, amongst others.
“Equally, PPSL can proceed to do enterprise with present on-line retailers for whom the companies will stay unaffected. We’re hopeful of receiving the required approvals in a well timed method and resubmitting the appliance,” Paytm added.

RBI had rejected Paytm’s rival MobiKwik PA licence application, publish which Mobikwik reapplied.

Uncover the tales of your curiosity

In March,
RBI had barred Paytm Payments Bank from onboarding new customers. “Onboarding of latest clients by Paytm Funds Financial institution Ltd can be topic to particular permission to be granted by the Reserve Financial institution of India (RBI) after reviewing (the) report of the IT auditors,” the central financial institution mentioned in a press release in March.

The ban continues to be in place. In truth, in its
September quarterly earnings, Paytm mentioned it nonetheless doesn’t have a agency timeline on when it expects the banking regulator to permit it from opening new Funds financial institution accounts.

RBI had in March 2020 released its payment aggregator framework which acknowledged that each one cost gateways are required to acquire a licence to onboard retailers, and supply them funds companies.

Up to now a minimum of 185 fintech companies together with large names corresponding to Cred, Razorpay, and PhonePe have submitted proposals searching for the licence.

Over the previous a number of months, the RBI has been holding shows with cost gateway suppliers and different fintech companies which have utilized for the licence. Nonetheless, it has been strict in its analysis of those purposes, sources earlier informed ET.

Paytm’s stock has hit an all-time low having slumped to Rs 465, down greater than 70% from its itemizing value a 12 months in the past. Reliance’s Jio Monetary Providers “can pose a major development and market-share danger” for gamers corresponding to Paytm and Bajaj Finance Ltd, Macquarie analysts led by Suresh Ganapathy wrote in a observe earlier this week.

In Could, a
report from Macquarie had set a target price of Rs 450 per share. Paytm’s IPO challenge value was Rs 2,150 per share when it listed in November final 12 months.

Keep on prime of technology and startup news that issues. Subscribe to our day by day e-newsletter for the newest and must-read tech information, delivered straight to your inbox.

Most Popular

Union Budget 2023: Salaried People Seek Tax Relief Ahead Of 2024 Polls

<!-- -->The final Union Funds didn't give reduction to the center classNew Delhi: Will salaried individuals in India get some respite on revenue...

India’s Economic Survey Likely To Peg 2023-24 Growth At Slowest In 3 Years: Report

<!-- -->The financial survey will probably be tabled within the Parliament at present. (File)Mumbai: India's annual pre-budget financial survey is more likely to...

Recent Comments