Reserve Financial institution of India (RBI) has for now declined to entertain Paytm Funds Providers’ (PPSL), an entirely owned subsidiary of Paytm, software for an authorisation to offer fee aggregator providers for on-line retailers.
The central financial institution has suggested PPSL to resubmit its software inside 120 days after taking sure steps. RBI desires Paytm to hunt essential approval for previous downward funding from the corporate into PPSL, to adjust to FDI pointers. PPSL has been suggested to not onboard new on-line retailers, in accordance with RBI letter, whose contents have been disclosed by Paytm in a inventory alternate submitting on Saturday.
Yet one more blow
That is the second blow for Paytm from the RBI, which had earlier in March directed the corporate to cease onboarding new prospects on Paytm Funds Financial institution.
Paytm stated in its inventory alternate submitting on Saturday that there are not any different “materials observations” made by central financial institution in its newest letter.
Additionally, Paytm stated that the RBI letter has no materials impression on its enterprise and revenues, for the reason that communication from the financial institution is relevant solely to onboarding of recent on-line retailers. “We are able to proceed to onboard new offline retailers and supply them fee providers together with All-in-One QR, Soundbox, Card Machines, and so on. Equally, PPSL can proceed to do enterprise with present on-line retailers, for whom the providers will stay unaffected”, Paytm stated.
“We’re hopeful of receiving the required approvals in a well timed method and resubmitting the appliance”.
Paytm might be the one giant fee gateway participant to not have acquired a go-ahead from the RBI. Incumbents like Pine Labs, Cashfree, Razorpay and CCAvenues had acquired an in-principle approval from RBI. Each BillDesk and PayU are awaiting RBI response. RBI had earlier rejected Mobikwik’s software for fee aggregator licence.
