Paytm, a leading digital payments company in India, has announced that it will reapply for a payment aggregator (PA) license. Vijay Shekhar Sharma, the founder and CEO of Paytm, shared this news at the company’s Annual General Meeting (AGM) on Thursday.
The decision to reapply follows a previous rejection by the Reserve Bank of India (RBI). In August, the RBI had canceled Paytm’s PA license application. The RBI had concerns about whether Paytm met all the required rules and regulations.
However, Paytm has received some good news recently. The company’s parent group, One97 Communications, got approval from the government for investments into Paytm Payments Services Limited (PPSL), a part of Paytm. With this approval, PPSL plans to submit its application for the PA license again.
In the meantime, PPSL will continue to offer online payment services to its existing partners. This is important because having a PA license allows Paytm to process payments between merchants and their customers. Without this license, Paytm’s ability to grow and serve more customers is limited.
During the AGM, Sharma shared some positive updates about Paytm’s performance. He expressed pride in the team’s achievements, especially in mobile payments. Sharma highlighted that over the past year, Paytm has shifted its focus to improving payment solutions for merchants. This includes services like loan, insurance, and mutual funds for businesses. Merchants can now use devices such as Soundbox and Card Machines, available through subscription services.
In February, the RBI had put restrictions on Paytm Payments Bank. The bank will no longer accept new deposits into accounts starting March 15, 2024. Only interest, cashbacks, and refunds will be allowed in the accounts after this date.
Overall, Paytm’s decision to reapply for the PA license is a significant move for the company. If the application is successful, it could help Paytm expand its services and grow its presence in the digital payments market in India.