Paytm Payments Services Gets Final RBI Nod For Aggregator Operations
"Growth in such business will be reflected in the consolidated financials of the company," Paytm parent One 97 Communications Ltd. said.
The Reserve Bank of India on Wednesday granted the authorisation certificate to Paytm Payments Services Ltd. to operate as a payment aggregator.
"Growth in such business will be reflected in the consolidated financials of the company," Paytm parent One 97 Communications Ltd. said in a stock exchange filing.
In August, the RBI granted in-principle authorisation to Paytm and asked the company to undertake a system audit that also includes a cybersecurity audit and submit the report within six months.
The central bank had previously declined Paytm's application, citing non-compliance with foreign direct investment norms. PPSL received approval from the central government for downstream investment from the parent company in August 2024, after which it resubmitted its PA application.
Last month, One 97 Communications said it will consolidate its online and offline merchant payments businesses under Paytm Payments Services to comply with RBI regulations. The offline business consists of merchants serviced through QR, soundbox, EDC machine payments, etc.
This will ensure that all payment aggregation activities are housed within one regulated entity and will build efficiency and synergy within the group, the company said.
Paytm shares settled 3.5% higher at Rs 1,286.35 apiece, ahead of the announcement, compared to a 1.2% jump in the benchmark BSE Sensex. The stock has risen 30% year-to-date.
Out of 19 analysts tracking the company, 11 maintains a 'buy' rating, six recommend a 'hold' and two suggest 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 1,411 implies an upside of 10%.
