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.
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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.