RBI denies Paytm's request for a licence as a payment aggregator

Paytm Payments Services (PPSL) was denied a licence to function as a payment aggregator by the Reserve Bank of India (RBI), the business announced to the stock exchanges on November 26. The subsidiary of the fintech company had submitted an application for authorization to offer payment aggregator (PA) services to online retailers.

As a result, Paytm is the only significant player in payment gateways to encounter a regulator rejection. The regulator has given the go-ahead in principle to incumbents including Razorpay, Pine Labs, Cashfree, and CCAvenues, while BillDesk and PayU are still awaiting a response.