India regulator asks One 97 Communications unit to reapply for payment aggregator licence


FILE PHOTO: Paytm app is seen on a smartphone in this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration

MUMBAI (Reuters) - India's banking regulator has declined a payment aggregator licence for the One 97 Communications Ltd unit that owns the popular Paytm brand, asking it to reapply with 120 days after meeting certain conditions.

The regulator asked Paytm Payments Services Ltd, a 100% subsidiary of One 97 Communications, to reapply after getting the necessary approvals for foreign direct investment in the company to comply with existing rules, the company said in a notification to stock exchanges on Saturday.

Payment aggregators, platforms that bring together various online payment options, must be licensed by India's central bank and banking regulator, Reserve Bank of India.

In its communication to exchanges, One 97 Communications said it does not expect the delay in securing a payment aggregator licence to impact its business.

The regulator also asked that Paytm Payments Services not bring onboard new online merchants until it reapplies for the licence.

(Reporting by Ira Dugal; Editing by William Mallard)

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

   

Next In Tech News

AI stocks rally in latest Wall Street craze sparked by ChatGPT
AI startup Cohere in talks to raise funding at $6 billion plus valuation -sources
Dell to lay off 5% of workforce amid PC slump
FTX judge weighs demand for independent bankruptcy investigation
Meta can be sued in Kenya by ex-content moderator, the country's court rules
IONOS sets IPO price guidance at lower end of range
Factbox: Renault, Nissan detail joint projects to revive alliance
Nissan to buy up to 15% stake in Renault EV unit under reshaped alliance
Japan's Daikin picks Manchester, UK as test bed for green tech
Oracle to invest $1.5 billion in Saudi Arabia, open data centre in Riyadh

Others Also Read