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The letter from RBI said that PPSL can continue with the online payment aggregation business, while it awaits approval from Government of India (GoI) for past investment from One 97 Communications (OCL) into PPSL as per FDI guidelines.
As per RBI's letter, on receipt of approval from GoI, PPSL will have 15 days to submit the application seeking authorisation for PPSL to operate as an online PA. However, if any adverse decision is taken by the GoI, then the same shall be informed to RBI immediately.
During this process, PPSL can continue with its online payment aggregation business for existing partners, without onboarding any new merchants, the company stated.
The company said that this continued to have no material impact on its business and revenues, since the communication from RBI is applicable only to onboarding of new online merchants and it can continue to provide payment services to existing online merchants.
Furthermore, for offline business, OCL can continue to onboard new merchants and offer them payment services including All-in-One QR, Soundbox, Card Machines, etc.
One 97 Communications is the digital financial services firm which operates under the Paytm brand. Paytm is India's payment super app offering consumers and merchants comprehensive payment services.
The company reported consolidated net loss of Rs 392 crore in Q3 FY23 as compared with net loss of Rs 778.40 crore in Q3 FY22. Net sales jumped 41.6% year on year to Rs 2062.20 crore in Q3 FY23.
The scrip rose 0.86% to currently trade at Rs 624.60 on the BSE.
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