At the company's Annual General Meeting on Thursday, Paytm's Vijay Shekhar Sharma reaffirmed the company's plan to reapply to the Reserve Bank of India for a payment aggregator (PA) license in due course.
"In due course, we will apply to RBI for a payment aggregator license," said Vijay Shekhar Sharma.
The Finance Ministry recently gave Paytm permission to invest in its payment services company. "With a letter dated August 27, 2024, the Ministry of Finance, Department of Financial Services, of the government of India, has approved PPSL's downstream investment from the firm into PPSL.
"PPSL will proceed to resubmit its PA application after receiving this permission. As for existing partners, PPSL will keep offering online payment aggregation services in the meantime," the Paytm filing had stated.
In November 2022, Paytm's application for a PA license permission was denied by the Reserve Bank of India (RBI), which then directed the business to resubmit in accordance with Press Note 3 compliance in order to comply with foreign direct investment regulations.
According to Press Note 3, the government has mandated that investments from countries having land borders with India require prior clearance. "We would like to inform you that PPSL has received approval from the Government of India, Ministry of Finance, Department of Financial Services, vide its letter dated August 27, 2024, for downstream investment from the Company into PPSL," the firm stated in a filing.
India's banking regulator and financial crime-fighting agency have been closely monitoring One 97 Communications, the company behind Paytm, since the central bank ordered it to shut down its payments bank in January.
