One 97 Communications Limited's 100% subsidiary, Paytm Payments Services Limited ("PPSL"), is in receipt of a letter from Reserve Bank of India ("RBI") in response to an application from PPSL for the authorization to provide payment aggregator services ("PA application") for online merchants.
As per the letter, PPSL is required to take the following steps and resubmit the PA application within 120 calendar days:
1. Seek necessary approval for past downward investment from the Company in to PPSL, to comply with FDI Guidelines
2. Not onboard new online merchants
There are no material observations other than what is mentioned above. This has no material impact on our business and revenues, since the communication from RBI is applicable only to onboarding of new online merchants.
The company can continue to onboard new offline merchants and offer them payment services including All-in-One QR, Soundbox, Card Machines, etc.
Similarly, PPSL can continue to do business with existing online merchants, for whom the services will remain unaffected.
The company is hopeful of receiving the necessary approvals in a timely manner and resubmitting the application.
Shares of One 97 Communications Limited was last trading in BSE at Rs. 464.80 as compared to the previous close of Rs. 441.05. The total number of shares traded during the day was 959503 in over 29493 trades.
The stock hit an intraday high of Rs. 474.95 and intraday low of 448.00. The net turnover during the day was Rs. 444824249.00.