The RBI has given more time to Paytm PaymentsServices Ltd (PPSL) to resubmit its application to obtain a payment aggregator license.

PPSL can continue with the online payment aggregation business, while it awaits approval from the Centre for the investments from One97Communications Ltd in PPSL.

PPSL is a 100 per cent subsidiary of One97 Communications.

In November last year, the banking regulator had asked PSL not to onboard online merchants. PPSL had to resubmit the application for PA services within 120 calendar days.

Paytm said in a regulatory filing that it has ``recently received an extension of time from the RBI for resubmission of the application. The letter from the RBI says that PPSL can continue with the online payment aggregation business, while it awaits approval from Government of India for past investment from OCL into PPSL as per FDI guidelines’’.

The company added that as per the RBI’s communication, on receipt of approval from the central government, PPSL will have 15 days to submit the application seeking authorisation for it to operate as an online PA.

“However, if any adverse decision is taken by the GoI, then the same shall be informed to the RBI immediately. During this process, PPSL can continue with its online payment aggregation business for existing partners, without onboarding any new merchants,’’ Paytm said.

The company added that the development does not have any material impact on its business and revenues, since the communication from the RBI is applicable only to onboarding of new online merchants.

Moreover, for offline business, OCL can continue to onboard new merchants and offer them payment services including all-in-one QR, soundbox and card machines among others.