- Shares of One97 Communications will be in focus following RBI's new authorisation for Paytm
- RBI authorised Paytm to operate as both online and offline payment aggregator services
- Paytm received approval to conduct cross-border transactions for inward and outward flows
Shares of One97Communication, the parent organisation of payment aggregator platform Paytm, will be in focus heading into Thursday's day of trade following a recent authorisation from the Reserve Bank of India.
The central bank has granted Paytm the authorisation to operate not only as an online but an offline payment aggregator as well. RBI has also given authorisation for Paytm to operate cross-border transactions for both inward and outward flows, the company confirmed through an exchange filing.
The RBI authorisation was accorded to Paytm's wholly-owned subsidiary Paytm Payments Services Limited (PPSL) and serves as a significant expansion opportunity for the payment aggregator platform.
Not to mention, this comes on the back of Paytm receiving online payment aggregation authorisation last month.
Paytm had recently made an additional investment of Rs 2,250 crore in Paytm Payments Services Limited through a rights issue.
In the exchange filing, Paytm noted that with the receipt of this letter, PPSL now holds Payment Aggregator licences across all key segments.
This milestone will enable the firm to offer end-to-end payment aggregation services covering online, offline, and cross-border use cases.
Management stated that this will help deliver seamless payment experiences for merchants and support the company's long-term growth in both domestic and international payment acceptance.
The RBI, meanwhile, has advised PPSL to launch its PA-Cross Border services within six months from the date of the letter and to keep the regulator informed regarding the commencement of this business.
RBI has also instructed Paytm to report unusual incidents, such as cyber-attacks, critical system outages, or internal fraud, within six hours of occurrence.
Failure to comply with these reporting timelines could attract penal action under the Payment and Settlement Systems Act, 2007.
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