Shares of Paytm (One97 Communications) jumped over 1% in the opening trade after the RBI (Reserve Bank of India) allowed Paytm Payments Services Ltd (PPSL) more time to for resubmission of their payment aggregator (PA) license application. Paytm share price hit a high of Rs 633 in the morning trade, against its Friday’s close of Rs 619.
The banking regulator said that the company can however continue with its online aggregation even when it still awaits the Centre’s approval for past investments from its parent firm One97 Communication (OCL) into PPSL, under FDI rules.
“The letter from RBI says that PPSL can continue with the Online Payment Aggregation business, while it awaits approval from Government of India (‘GoI’) for past investment from OCL into PPSL as per FDI Guidelines,” said Paytm in a filing.
As per the RBI’s letter, on receipt of approval from the government, PPSL will have fifteen days to submit the application seeking authorisation for PPSL to operate as an online payment aggregator. However, if any adverse decision is taken by the government, then the same will have to be informed to RBI immediately. During this process, PPSL can continue with its online payment aggregation business for existing partners, without onboarding any new merchants, said RBI.