SUMMARY
- Paytm plans to reapply for its payment aggregator license following recent government approval for downstream investments into PPSL.
- Paytm’s share price showed minor fluctuations, with a market cap of Rs 42,693 crore, and the company reported a strong cash balance of Rs 8,500 crore.
- The RBI has imposed restrictions on Paytm Payments Bank, limiting account deposits post-March 15, 2024, to only certain transactions.
During Paytm‘s Annual General Meeting (AGM) on Thursday, Vijay Shekhar Sharma, the company’s founder, announced plans to reapply for a payment aggregator (PA) license from the Reserve Bank of India (RBI). This decision follows a recent government approval for downstream investment into Paytm Payments Services Limited (PPSL) by its parent company, One97 Communications.
Sharma revealed that PPSL will proceed to resubmit its PA application, having secured necessary approvals. Meanwhile, PPSL will continue offering online payment aggregation services to its current partners. The RBI had previously rejected Paytm’s PA license application in November 2022.
On the stock market, Paytm’s shares remained relatively stable, trading at Rs 671, slightly up from the previous close of Rs 667 on BSE, with a market capitalization of Rs 42,693 crore. Sharma expressed pride in the company’s achievements over the past year, highlighting a successful shift towards a payment-centric business model. This model now emphasizes merchant payment solutions, including devices like Soundbox and Card Machines through subscription services.
Sharma also noted Paytm’s strong financial position, with a reported cash balance of Rs 8,500 crore as of FY24. However, he addressed recent RBI restrictions imposed on Paytm Payments Bank, which will prevent deposits into accounts after March 15, 2024, allowing only interest, cashbacks, and refunds to be credited.
