RBI pauses onboarding of online merchants by Paytm Payments Services
Paytm on Saturday shared an update with the exchanges about its 100 percent subsidiary, Paytm Payments Services Limited (PPSL). The company can now resubmit the application within 120 calendar days for the payment aggregator services.
Paytm is India’s leading digital payments and financial services company.
The company said that it has received a letter from the RBI in response to an application from PPSL for the authorization to provide payment aggregator services (“PA application”) for online merchants.
Ahead of that, the company will seek necessary approval for past downward investment from One97 Communications Ltd (OCL) into PPSL, to comply with FDI guidelines. During this process, the company will not onboard new online merchants.
“We can continue to onboard new offline merchants and offer them payment services, including All-in-One QR, Soundbox, Card Machines, etc. Similarly, PPSL can continue to do business with existing online merchants for whom the services will remain unaffected,” said the company in its exchange filing.
This means that Paytm’s strong business momentum will continue, with no impact on its profitability target as the company can continue to work with its existing online merchants.
Additionally, Paytm’s growing device deployments base and increasing offline payments base will also not be impacted by this development where it can continue to onboard new merchants.
The company specifically outlined that this has no material impact on its business and revenues since the communication from RBI is applicable only to the onboarding of new online merchants.
“We are hopeful of receiving the necessary approvals in a timely manner and resubmitting the application,” said the company.
[With Inputs from IANS]
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If you search term ‘Paytm’ on website rbi.org.in, you will find 158 search results.
But for BharatPe, it is one search results, PhonePe has 8 search results…
Why is BharatPe not under RBI scrutiny?
Why just Paytm? Why not BharatPe and others too?
What is All in One QR of Paytm? As per RBI notification dated 22-Oct-2020 (https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11987&Mode=0) “Payment System Operators (PSOs) that use proprietary QR codes shall shift to one or more interoperable QR codes; the process of migration shall be completed by March 31, 2022.”
All RBI officials, management and investors of Paytm, BharatPe etc are guilty of crime.