India Banking Regulator Asks Paytm Unit to Reapply for License

(Bloomberg) — India’s banking regulator requested a unit of Paytm to resubmit its software for approval required to offer cost aggregator providers, a doubtlessly profitable enterprise the corporate is making an attempt to develop into.

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The Reserve Financial institution of India requested Paytm Funds Service Ltd. to resubmit its software after in search of needed approvals from its mum or dad to adjust to international direct funding tips, the fintech firm mentioned in a disclosure to inventory exchanges on Saturday.

Paytm, backed by SoftBank Group Corp. and Ant Group Co., is increasing its product providing in a bid to persuade buyers of its earnings potential whilst losses mount. Its inventory has misplaced three-quarters of its worth since Paytm’s preliminary public providing a yr in the past — the worst first-year decline amongst giant IPOs globally over the previous decade.

Cost aggregators are platforms offering numerous funds choices to prospects comparable to retailers. They want a license from the Reserve Financial institution of India to function.

PPSL, a 100% subsidiary of Paytm mum or dad One97 Communication Ltd., was additionally requested by RBI to not onboard new on-line retailers as prospects. Paytm can nonetheless hold including offline retailers as customers.

“This has no materials influence on our enterprise and revenues, because the communication from RBI is relevant solely to onboarding of latest on-line retailers,” Paytm mentioned. “We’re hopeful of receiving the required approvals in a well timed method and resubmitting the applying.”

PPSL has to resubmit the applying in 120 days.

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