Merchants

The central bank has asked the company to take necessary approval for past downward investments from Paytm to the company in order to comply with FDI guidelines, through a letter. the company said that they may continue to onboard new offline merchants and offer them payment services along with All-in-One QR, Soundbox, Card Machines, etc

Indian digital payments and financial services company, Paytm notified the stock exchanges that the Reserve Bank of India (RBI) directed its subsidiary, Paytm Payment Services Ltd (PPSL) not to onboard new online merchants, on 26 November.

The company had filed an application for a payment aggregators license, to which it has now response.

The central bank has asked the company to take necessary approval for past downward investments from Paytm to the company in order to comply with FDI (Foreign Direct Investments) guidelines, through a letter.

By complying the two steps prescribed by the regulator, PPSL is eligible to apply for a payment aggregators license in coming 120 days.

Paytm in the exchange notification, said “This has no material impact on our business and revenues, since the communication from RBI is applicable only to onboarding of new online merchants.”

Also, the company said that they may continue to onboard new offline merchants and offer them payment services along with All-in-One QR, Soundbox, Card Machines, etc.

At the same time, PPSL may still continue to do business with existing online merchants, for whom the services will remain unaffected.