New Delhi : The Reserve Bank of India (RBI) has rejected the payment aggregator license application of Payment Services Limited (PSSL), a subsidiary of digital payments and financial services provider Paytm.
The company has given this information to the stock markets on Saturday. With this decision of the Reserve Bank, the expansion plan of the company may get a setback. However, RBI has asked Paytm to reapply within 120 days. Actually, the company was not meeting the criteria of net worth. Paytm Payments Services Limited, a subsidiary of Paytm, had applied for the payment aggregator license. Apart from Paytm, RBI has also rejected MobiKwik’s application.
Razorpay, Pine Labs and CCAvenues have received regulatory approval from RBI except Paytm and MobiKwik, while Billdesk and PayU are awaiting RBI’s decision. However, the Paytm company has expressed hope that after applying again, it will get approval from RBI.
It is noteworthy that a payment aggregator is a service provider, which provides all types of payment options at one place. This provider collects money from customers and sends it to shopkeepers after a certain time.