Paytm Payments Gets RBI Nod To Operate As Online Payment Aggregator

Paytm Payments Services Ltd. has received the Reserve Bank of India's nod to operate as an online payment aggregator, according to an exchange filing on Tuesday.

The RBI, in its letter to the Paytm payments arm, has asked the company to undertake a system audit that also includes cyber security audit and submit the report to the central bank within six months.

If the company fails to submit the report, the in-principle authorisation granted shall lapse and the final authorisation will not be considered.

The central bank had previously declined Paytm's application, citing non-compliance with foreign direct investment norms. The RBI also instructed Paytm to meet the requirements before reapplying.

Earlier this month, Alibaba Group affiliate Antfin exited Paytm by selling 5.84% stake.

In August last year, PPSL received approval from the central government for downstream investment from the parent company, after which it resubmitted its PA application.

"While it awaits the approval of the application, PPSL continues to provide payment aggregation services to its existing online merchants," the Vijay Shekhar Sharma-led company said.

The business update was shared after market hours. The stock settled 0.18% lower at Rs 1,120 apiece on the NSE, compared to a 0.40% decline in the benchmark Nifty 50.

Paytm's shares have risen 117.64% in the last 12 months and 10.04% year-to-date.

Out of 19 analysts tracking the company, 10 maintains a 'buy' rating, five recommend a 'hold' and four suggest 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 1,145.31 implies an upside of 2.3%.