India's Paytm Payments Services gets extension for payment aggregation licence

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India's Paytm Payments Services gets extension for payment aggregation licence

The interface of Indian payments app Paytm is seen in front of its logo displayed in this illustration picture.

Reuters -- Indian financial technology company Paytm Payments Services Ltd has received an extension from the country's banking regulators to apply for a payment aggregation licence and will reapply in about 15 days, the company said on Sunday.

Paytm Payments Services can continue with its online payment aggregation business for existing partners, without taking any new merchants, the company said in a notification to stock exchanges on Sunday.

Paytm Payments Services Ltd is a wholly owned subsidiary of One 97 Communications.

Payment aggregators, platforms that bring together various online payment options, must be licensed by India's central bank and banking regulator Reserve Bank of India.

In November, India's banking regulators declined a payment aggregation license for the One 97 Communications unit that owns the popular Paytm brand.

The company said that the latest move has no material impact on its business and revenue and the company can continue to take on new merchants and offer them payment services, as well as the offline part of the business.