Paytm AGM: Vijay Shekhar Sharma repeats intention to reapply for payment aggregator license to RBI in due course

Paytm's Vijay Shekhar Sharma on Thursday during company's Annual General Meet repeated the intention to reapply for a payment aggregator (PA) licence to Reserve Bank of India in due course.

"We will apply for payment aggregator license to RBI in due course," said Vijay Shekhar Sharma.

Recently, Paytm got approval from the Finance Ministry to invest in its payment services business. "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.


"With this approval in place, PPSL will proceed to resubmit its PA application. In the meantime, PPSL will continue to provide online payment aggregation services to existing partners," Paytm filing said earlier.

The Reserve Bank of India (RBI) had rejected Paytm's PA licence permit application in November 2022 and instructed the company to reapply with Press Note 3 compliance under the foreign direct investment norms.

As per Press Note 3, the government had made its prior approval mandatory for investments from nations that share land borders with India. "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 company said in a filing.

One 97 Communications, which operates Paytm, has been under the scrutiny of India's banking regulator and financial crime-fighting agency after the central bank ordered it to wind down its payments bank in January.

(with agency inputs)