MUMBAI: The RBI asked pay Payment Services (PPSL), a 100% subsidiary of parent company One97 Communications, is not bringing any new online merchants to its payments service. This happened after the company did not receive immediate permission from the RBI to provide payment aggregation services.
The company said it can continue to introduce new offline merchants and offer them payment services, including QR All-in-One, Music boxand card machine. Likewise, PPSL can continue to do business with existing online sellers, whose services will not be affected.
Payment aggregators are required to register with the RBI by September 2022. Previously, these payment aggregators were considered to be outsourced agents of banks. With payment aggregators recognized as independent service providers, they need to be registered and subject to RBI regulation.
Paytm said in its regulatory filing that the RBI had asked PPSL to seek the necessary approval for a previously reduced investment from the company to PPSL and to comply with foreign direct investment guidelines. “This has not had a significant impact on our business and revenue as communications from RBI only apply to the introduction of new online merchants,” it said.
Paytm’s filing comes at the end of the week when its share price came under severe pressure. In March, RBI banned Payment Bank PaytmSince then, it has shifted its focus to its lending business and has reassured investors that it will reach profitability sooner than expected.
The company said it can continue to introduce new offline merchants and offer them payment services, including QR All-in-One, Music boxand card machine. Likewise, PPSL can continue to do business with existing online sellers, whose services will not be affected.
Payment aggregators are required to register with the RBI by September 2022. Previously, these payment aggregators were considered to be outsourced agents of banks. With payment aggregators recognized as independent service providers, they need to be registered and subject to RBI regulation.
Paytm said in its regulatory filing that the RBI had asked PPSL to seek the necessary approval for a previously reduced investment from the company to PPSL and to comply with foreign direct investment guidelines. “This has not had a significant impact on our business and revenue as communications from RBI only apply to the introduction of new online merchants,” it said.
Paytm’s filing comes at the end of the week when its share price came under severe pressure. In March, RBI banned Payment Bank PaytmSince then, it has shifted its focus to its lending business and has reassured investors that it will reach profitability sooner than expected.
