The Reserve Bank of India (RBI) has refused to allow a payment aggregator (PA) licence to listed fintech unicorn Paytm, according to the company’s filings with the Bombay Stock Exchange (BSE).
Paytm has also been barred from accepting new online merchants. Paytm stated in its filing that Paytm Payments Services Limited (PPSL), a 100% subsidiary of the payments company, has received a letter from the RBI informing it of the next steps in obtaining the licence. The RBI has given Paytm 120 days to resubmit its application. The company stated that its existing online merchants’ services would be unaffected.
