Paytm’s founder and CEO, Vijay Shekhar Sharma, has reiterated the company’s commitment to reapply for a payment aggregator (PA) license from the Reserve Bank of India (RBI). This announcement was made during Paytm’s Annual General Meeting held on Thursday, signaling a renewed effort to secure regulatory approval for its payment services operations.
Sharma confirmed that Paytm intends to initiate the reapplication process “in due course,” reflecting the company’s ongoing dedication to expanding its payment services. This move follows recent positive developments for Paytm Payments Services Limited (PPSL), a key subsidiary of Paytm.
On August 27, 2024, PPSL received approval from the Ministry of Finance for further investment into its payment services business. According to a company filing, the Ministry of Finance’s Department of Financial Services granted this approval for downstream investment from Paytm into PPSL. This green light is expected to facilitate PPSL’s resubmission of its PA license application to the RBI.
The approval comes after the RBI previously rejected Paytm’s initial PA license application in November 2022, citing non-compliance with Press Note 3. This regulation necessitates government approval for investments originating from countries with land borders with India. Despite this setback, Paytm has remained committed to meeting the regulatory requirements and advancing its payment services.
In the interim, PPSL will continue to offer online payment aggregation services to its existing partners while preparing to reapply for the PA license. The company emphasized that it is dedicated to complying with regulatory standards and advancing its payment services.
Paytm’s parent company, One97 Communications, has faced heightened regulatory scrutiny in recent years. Earlier this year, the RBI ordered Paytm Payments Bank to cease onboarding new customers due to compliance concerns. Additionally, the company has been under investigation by India’s financial crime-fighting agency.
As Paytm prepares to reinitiate its PA license application, the company remains focused on enhancing its payment services and adhering to regulatory requirements.
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