The Paytm app is seen on a smartphone in this illustration.
MUMBAI Reuters- India's banking regulator has declined a payment aggregation licence for the One 97 Communications Ltd unit that owns the popular Paytm brand, asking it to apply for a new license with 120 days after meeting certain conditions.
The regulator asked Paytm Payments Services Ltd, a 100% subsidiary of One 97 Communications, to reapply for foreign direct investment in the company to comply with existing rules, the company said in a notification to stock exchanges on Saturday.
Payment aggregation platforms, which bring together various online payment options, must be licensed by India's central bank and banking regulator Reserve Bank of India.
One 97 Communications said it did not expect a delay in securing a payment aggregation licence to affect its business in its communication to exchanges.
The regulator asked that Paytm Payments Services not bring onboard new online merchants until it reapplies for the licence.