RBI turns down Paytm’s software for cost aggregator licence, asks to resubmit plea in 120 days

The Reserve Financial institution of India (RBI) has turned down Paytm Funds Providers Restricted’s software to hunt licence to function as a cost aggregator throughout the nation, the corporate mentioned in a regulatory submitting. The central financial institution has now requested PPSL to re-submit its cost aggregator (PA) companies software inside 120 calendar days, i.e. 4 months. It’s to be famous that One97 Communications (OCL), which owns the Paytm model, had proposed to switch the cost aggregator companies enterprise undertaken by it to Paytm Funds Providers (PPSL) in December 2020 to adjust to cost aggregator (PA) tips of the Reserve Financial institution of India (RBI). 

The fintech firm re-submitted the required paperwork in September 2021. The RBI has now responded to the applying.  

The fintech firm would require crucial approval for previous downward funding from One97 Communications Ltd (OCL) into PPSL, to adjust to the nation’s international direct funding (FDI) tips. Until the approvals are cleared, the fintech firm is not going to onboard new on-line retailers. 

The corporate clarified that RBI has not famous every other “materials observations”. 

“This has no materials affect on our enterprise and revenues for the reason that communication from RBI is relevant solely to onboarding of recent on-line retailers. We will proceed to onboard new offline retailers and supply them cost companies together with all-in-one QR, Soundbox, card machines,” PPSL’s assertion mentioned. 

RBI’s PAs tips state {that a} single entity can’t proceed to offer an e-commerce market together with cost aggregator companies. Such cost aggregator companies have to be separated from the e-commerce market enterprise. 

A cost aggregator provides varied cost companies to retailers and e-commerce websites by a bunch of cost devices from prospects. With such cost aggregator companies, retailers needn’t create a separate cost integration system of their very own. The companies offered below this are transactions by money and cheque, on-line and offline touchpoints, and others. 

(With company inputs)