• The Reserve Bank of India sent a letter, according to Paytm.
• One97 Communications owns Paytm.
• The business will not bring on any new online merchants during this period.

A wholly owned subsidiary of Paytm, a company that offers financial services and electronic payments, updated the exchanges on Paytm Payments Services. The fintech business reported receiving a letter from the Reserve Bank of India (RBI) in response to a request from a subsidiary for authorization to offer payment aggregator services to online retailers.

 The company has 120 calendar days from today to submit a new application for the payment aggregator services. The company will first ask Paytm for the necessary approval for the prior downward investment into its subsidiary in order to comply with laws on foreign direct investment. 

During this time, the company will not add any new online retailers. 'We can keep adding more offline retailers and offering them payment options like All-in-One QR, Soundbox, Card Machines, etc. Similar to this, PPSL can continue to work with current online retailers, whose services will not be impacted.' said the company on Saturday. 

In essence, this indicates that Paytm's solid business growth is likely to continue, with no change to its profitability aim because the company can keep working with its current online retailers. Additionally, this development won't have an influence on Paytm's expanding network of device deployments or its expanding base of offline payments because it can keep bringing on new merchants.

 'The business stated in its filing that the RBI announcement has no appreciable impact on its operations or revenues because it only pertains to the onboarding of new online merchants. We anticipate receiving the necessary clearances quickly, which will allow us to resubmit the application 'the company mentioned in the filing.