Paytm Secures RBI Approval for Comprehensive Payment Aggregation

Paytm's subsidiary, PPSL, has received RBI's authorization to operate as a Payment Aggregator for offline and cross-border transactions. This expands on its previous license for online payments. The approval follows initial rejection due to non-compliance with FDI rules.

In a significant development, fintech giant One97 Communications announced that its arm, Paytm Payments Services Limited (PPSL), has secured approval from the Reserve Bank of India (RBI) to function as a Payment Aggregator for offline and cross-border transactions.

This new authorization complements the online Payment Aggregator license already granted in November, providing PPSL with comprehensive permissions across digital and physical transaction domains. According to Paytm's regulatory filing, this development marks a pivotal milestone in their efforts to offer end-to-end payment solutions for businesses.

PPSL had originally applied for this license in 2020 but faced a setback in 2022 when the RBI rejected their application due to non-compliance with FDI rules. After rectifying these issues and resubmitting the application with appropriate investments details, PPSL finally received the authorization.

(With inputs from agencies.)