Paytm gets RBI’s in-principle nod for online payment aggregator licence

The Indian Reserve Bank (RBI) gave a principle approval to operate as an online payment collector to Paytm Payments Services LTD (PPSL), the company’s main 97 Communications LTD on Tuesday. Paytm will now be able to take part in new customers.

The authorization only for online payment collector operations leads to the company’s expanding the digital payment business, as defined within the scope of RBI instructions.

“The seller placed in the video letter of the Paytm Payments Services Limited (PPSL) dated November 25, 2022,” he said.

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“PPSL should comply with the instructions on the explanations given by the RBI on March 31, 2021 by the regulation of payment collectors dated March 17, 2020 and the explanations given by the RBI on 31 March 2021.”

In September 2024, a 97 communication was re -applied for a payment collector license and expected approval for nine months such as Payu’s peers, such as Zaakpay and Pbfintech’s lending arm.

A payment collector license allows an Fintech to collect and solve payment on behalf of businesses, which makes it easier and safer to accept digital transactions.

Resolving obstacles

Giving the license was postponed even if the Chinese firm Alibaba Group -backed Antfin’s shares in Paytm were not reduced to less than 10%, which is generally restricted by a move, norm and a land limit with a land, India, which aims to solve a key obstacle under 2020 foreign investment norms.

In August 2023, Antfin directed 44% of Paytm’s shares to the General Manager Vijay Shekhar Sharma through overseas asset asset management. However, the final regulation permission for a payment collector license came after the exit of Alibaba Group company, which ended a decade of a decade. At the beginning of this month, There was mint He reported that Antfin would sell 5.84% of his One97 communication. La3.803 Crore through a block agreement defining sales as “cleaning” trade.

In the event of a regulatory examination, in January 2024, a 97 Communications’ Paytm Payment Bank was ordered by RBI to stop the recruitment of new customers and to be concerned about their compliance with the banking regulations.