Latest news with #GuidelinesonRegulationofPaymentAggregatorsandPaymentGateways
Business Standard
3 days ago
- Business
- Business Standard
Paytm jumps after RBI grants nod for payment aggregator licence
One 97 Communications surged 4.70% to Rs 1,172.60 after its wholly-owned subsidiary, Paytm Payments Services Limited (PPSL), received in-principle authorisation from the Reserve Bank of India (RBI) to operate as an online payment aggregator. The RBI's approval, communicated via a letter dated 12 August 2025, allows PPSL to resume onboarding merchants, a process that had been restricted since November 2022. The move lifts prior regulatory hurdles and enables the subsidiary to continue its payment aggregation business, subject to ongoing compliance with RBI's Guidelines on Regulation of Payment Aggregators and Payment Gateways. Paytm noted that this approval is conditional, with full authorisation contingent on adherence to regulatory norms issued in March 2020 and subsequent updates. The company also highlighted that any future changes in control or transfer of activities would require prior RBI approval. Paytm is India's leading mobile payments and financial services distribution company. The company reported a consolidated net profit of Rs 122.5 crore, reversing a net loss of Rs 544.6 crore in Q1 FY25. Revenue from operations rose 27.7% YoY to Rs 1,917.5 crore, driven by growth in subscription merchants, higher GMV (Gross Merchandise Value), and increased revenue from financial services distribution.
Time of India
3 days ago
- Business
- Time of India
‘In-principle' authorisation: Paytm gets RBI nod to operate as online payment aggregator ending onboarding freeze; shares hit 52-week high with 5% surge
Paytm shares surge after RBI authorisation NEW DELHI: Paytm Payments Services has secured approval from the Reserve Bank of India to function as an online payment aggregator, according to a regulatory filing by its parent organisation One 97 Communications on Tuesday. This approval lifts the restrictions placed on Paytm Payments Services Limited (PPSL) regarding new merchant onboarding, which had been in effect since November 25, 2022. "Paytm Payments Services Limited (PPSL), a wholly-owned subsidiary of One 97 Communications Limited (OCL or the Company), for a Payment Aggregator (PA) licence. We would like to inform you that Reserve Bank of India ("RBI") has granted 'in-principle' authorisation to PPSL vide its August 12, 2025, to operate as an Online Payment Aggregator under the Payment and Settlement Systems Act, 2007," the filing stated, as quoted by news agency PTI. The organisation submitted its application for the permit in March 2020, but approval was delayed due to compliance matters concerning Foreign Direct Investment in the company. This authorisation arrives shortly after Chinese enterprise Alibaba group divested its complete shareholding in One97 Communications. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 3 Lakh+ Have Transformed Their Smile Toothsi by MakeO Book Now Approval subject to conditions RBI's nod directed that PPSL must comply with the Guidelines on Regulation of Payment Aggregators and Payment Gateways, including clarifications issued on March 31, 2021, to maintain its authorisation, as reported by Economic Times. The authorisation specifically encompasses PA operations as outlined in the guidelines. Any transactions beyond this scope, including merchant 'pay-outs', must be processed through separate channels, not through the designated PA escrow accounts. The central bank has also mandated PPSL to conduct a thorough System Audit, incorporating cybersecurity assessment. This audit must be performed by qualified professionals, either CERT-In empanelled auditors, Certified Information Systems Auditors (CISA), or DISA-certified experts. The assessment scope needs to include verification of compliance with the Master Direction on Cyber Resilience and Digital Payment Security Controls for non-bank Payment System Operators, alongside RBI's guidelines on 'Storage of Payment System Data'. RBI stipulateed that PPSL must submit the audit findings within six months from the letter date. Failure to meet this deadline will result in automatic cancellation of the in-principle authorisation. Furthermore, the financial firm must seek prior approval for any modifications in its shareholding or ownership structure. Shares reflect positive sentiment In the trading session following the RBI nod, One 97 Communications' shares surged 4.8% to reach a fresh 52-week peak of Rs 1,173.70 on BSE on Wednesday. The previous day, Paytm's stock had concluded marginally lower at Rs 1,119.95 on the BSE. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
Mint
3 days ago
- Business
- Mint
Paytm share price rallies 5% after RBI gives nod to operate as online payment aggregator. Should you buy?
One 97 Communications, the parent firm of Paytm, share price surged 5.27 per cent to ₹ 1,183.60 on the NSE in Wednesday's trading session after the Reserve Bank of India (RBI) granted in-principle approval to its wholly owned unit, Paytm Payments Services Ltd (PPSL), to function as an online payment aggregator. Paytm share price has remained largely positive in the near-term. The stock has given multibagger returns in last one year by surging over 132 per cent. In the short-term, Paytm stock has gained 20 per cent in a month and nearly 55 per cent in six month. The RBI, in its communication, clarified that the approval granted to PPSL is conditional on its compliance with the Guidelines on Regulation of Payment Aggregators and Payment Gateways and the related clarifications issued on March 31, 2021. The authorisation applies solely to PA activities as defined in these guidelines, and transactions beyond this scope — such as merchant 'pay-outs' — cannot be processed through escrow accounts meant for PA operations. Additionally, the central bank has instructed PPSL to carry out a thorough system audit, including a cybersecurity audit, to be conducted by a CERT-In empanelled auditor or a qualified professional holding CISA or DISA certification. The audit must also cover adherence to the Master Direction on Cyber Resilience and Digital Payment Security Controls for non-bank Payment System Operators, as well as compliance with the RBI's circular on the Storage of Payment System Data. The audit report must be sent to the RBI within six months from the date of the letter; otherwise, the in-principle authorisation will automatically expire. Furthermore, PPSL has been instructed to obtain prior approval for any changes in its shareholding or ownership. Brokerage firm JM Financial, while reiterating 'buy' tag with target price of ₹ 1,300, said that this could be a big sentimental trigger as the approval likely becomes a precursor to further regulatory clearances for Paytm. ' The approval marks a significant regulatory milestone for the company and also lifts the ban on on-boarding new merchants, which had been in place since Nov'22 when PPSL's earlier application was rejected. As highlighted in our earlier note on regulatory triggers, we expected this to have c.5% benefit to Paytm's FY27E EBITDA. We value Paytm at 40x Jun'27 Adj. EBITDA of INR 18.5bn to reach Jun'26 TP of INR 1,320, implying 17.9% upside at CMP. Moreover, there still remains the optionality of further regulatory triggers such as UPI monetisation and Paytm wallet that could each result in c.25-30% rise in our EBITDA estimates,' it said. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
3 days ago
- Business
- Mint
Paytm gets RBI's in-principle nod for online payment aggregator licence
The Reserve Bank of India (RBI) has given Paytm Payments Services Ltd (PPSL) an in-principle approval to operate as an online payment aggregator, the company's parent One 97 Communications Ltd said in a stock exchange filing on Tuesday. Paytm will now be able to onboard new customers. The authorisation, which applies only to online payment aggregator operations, as defined under RBI guidelines, paves the way for the company to expand its digital payments business. 'Merchant onboarding restrictions placed on Paytm Payments Services Limited (PPSL) vide letter … dated November 25, 2022, stand withdrawn from the date of this letter,' the filing stated. 'PPSL must comply with the Guidelines on Regulation of Payment Aggregators and Payment Gateways dated March 17, 2020 (as updated from time to time) and the clarifications issued by RBI on March 31, 2021.' Paytm, the wholly-owned subsidiary of One 97 Communications, had reapplied for the payment aggregator licence in September 2024 and was awaiting approval for nine months, even as its peers including PayU, MobiKwik's Zaakpay, and PBFintech's lending arm got their licences. A payment aggregator licence enables a fintech firm to collect and settle payments on behalf of businesses, making it easier and more secure for them to accept digital transactions. The award of the licence was delayed even as Chinese firm Alibaba Group-backed Antfin's stake in Paytm was reduced to below 10%, a move that was aimed at resolving a key hurdle under the 2020 foreign direct investment norms, commonly referred to as Press Note 3. The norm restricts investments from countries sharing a land border with India without prior government approval. In August 2023, Antfin had transferred a 44% stake in Paytm to chief executive officer Vijay Shekhar Sharma, routed through his overseas entity Resilient Asset Management. The final regulatory clearance for a payment aggregator licence, however, came after the exit of the Alibaba Group firm from Paytm, ending a decade-long investment. Earlier this month, Mint had reported that Antfin will sell its entire 5.84% stake in One97 Communications for ₹ 3,803 crore through a block deal, describing the sale as a 'clean-up' trade. In a case of regulatory scrutiny, in January 2024, One 97 Communications' Paytm Payments Bank was ordered by the RBI to halt onboarding of new customers, citing concerns over its compliance with banking regulations.
Time of India
3 days ago
- Business
- Time of India
Paytm shares surge 5% to 52-week high as RBI grants payment aggregator licence to subsidiary
Academy Empower your mind, elevate your skills Shares of One 97 Communications , the parent company of Paytm , rallied 4.8% to a new 52-week high of Rs 1,173.70 on BSE 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, 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 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 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 PPSL has been advised to comply with prior approval requirements in case of any change in shareholding or a significant relief, RBI has also withdrawn the merchant onboarding restrictions imposed on PPSL since November 2022, with immediate Tuesday, Paytm share price 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)
