Govt Nod Required by Paytm About Aggregator License’s FDI

Government approval will be required by Paytm Payments Services regarding investments from its parent company One97 Communications for receiving a payment aggregator license from the RBI.

In November 2022, Paytm was asked by the RBI to resubmit its application within 120 days after taking the required steps while allocating licenses to payment aggregators. It was also barred by the central bank from onboarding new online merchants.

An affiliate of the Alibaba Group from China, Antfin (Netherlands) Holdings has a 25% stake in the Paytm parent. Last month, Alibaba quit its direct holding within the organisation by having sold a 3.3% stake.

Exchanges have been informed by Paytm that the timeline has been extended by the RBI for the submission of the application.

“ The letter from RBI says that PPSL can continue with the online payment aggregation business, while it awaits approval from the government for past investments from One97 communications into PPSL under FDI guideline,” as stated by Paytm.

As per the letter from the RBI, with the approval receipt from the government, 15 days will be given to PPSL for application submission requesting authorisation from the government in order to operate as an online payment aggregator. However, if the government takes any adverse decision, then PPSL will be informed about it immediately.

During the entire procedure, PPSL can continue to operate as an online payment aggregator without recruiting any new partners.

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