Paytm shares in focus as RBI grants in-principle payment aggregator licence to subsidiary
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Shares of One 97 Communications , the parent company of Paytm, are likely to be in the spotlight on Wednesday, August 13, after the Reserve Bank of India (RBI) granted in-principle authorisation to its wholly-owned subsidiary, Paytm Payments Services Ltd (PPSL), to operate as an Online Payment Aggregator In its communication, RBI stated that the authorisation is subject to PPSL adhering to the Guidelines on Regulation of Payment Aggregators and Payment Gateways, along with clarifications issued on March 31, 2021.The approval covers only PA operations as defined in these guidelines, and any transactions outside the scope — such as merchant 'pay-outs' — must not be routed through escrow accounts designated for PA operations.The central bank has also directed PPSL to undertake a comprehensive System Audit , including a cybersecurity audit , to be conducted by a CERT-In empanelled auditor or a qualified Certified Information Systems Auditor (CISA) or DISA-certified professional.The audit's scope must also include compliance with the Master Direction on Cyber Resilience and Digital Payment Security Controls for non-bank Payment System Operators and RBI's circular on 'Storage of Payment System Data '.The audit report must be submitted to RBI within six months from the date of the letter, failing which the in-principle authorisation will lapse automatically.Additionally, PPSL has been advised to comply with prior approval requirements in case of any change in shareholding or ownership.In a significant relief, RBI has also withdrawn the merchant onboarding restrictions imposed on PPSL since November 2022, with immediate effect.On Tuesday, Paytm shares closed flat with a negative bias to end the session at Rs 1,119.95 on the BSE.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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