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Paytm gets final RBI approval to operate as Bharat Bill Payment Operating Unit

Tuesday 17 January 2023 14:33 CET | News

Payments company Paytm has gotten approval from the Reserve Bank of India (RBI) to operate as a Bharat Bill Payment Operating Unit (BBPOU).

 

So far, Paytm has been undertaking this activity under in-principle authorisation from RBI.

Under Bharat Bill Payment System (BBPS), a BBPOU is allowed to facilitate bill payment services of electricity, phone, DTH, water, gas insurance, loan repayments, FASTag recharge, education fees, credit card bill, and municipal taxes. BBPS is owned by the National Payments Corporation of India.

Payments company Paytm has gotten approval from the Reserve Bank of India (RBI) to operate as a Bharat Bill Payment Operating Unit (BBPOU).

Company officials said that PPBL has got the final approval from RBI to operate as Bharat Bill Payment Operating Unit (BBPOU) under the Payment and Settlement Systems Act, 2007. As an entity under Bharat Bill Payment System (BBPS), PPBL has got the final authorisation to conduct bill payment and aggregation business as a BBPOU.

Driving financial inclusion with increased payments reach

Under RBI's guidance, PPBL will display all agent institutions onboard on its website.

The company’s vision is to drive financial inclusion by offering users greater access to digital services. With this approval, Paytm will further increase the adoption of digital payments by merchant billers and enable them with secure, fast, and convenient transactions. Through the Paytm app, users can make convenient payments for their bills and benefit from automatic payments and reminder services.

Failed attempt at receiving a payment aggregator licence

The news come shortly after RBI has denied a payment aggregator (PA) to fintech Paytm, and has been bard from onboarding new online merchants.

In its filing, Paytm said that Paytm Payments Services Limited (PPSL), a 100% subsidiary of the payments major, has received a letter from the RBI, informing it about the next steps to receive the licence.

The fintech states that the RBI has not rejected its application, but have simply asked it to reapply in 120 days. The company is taking all the necessary steps and is hopeful of getting the required approvals soon. Paytm is supposed to submit documents and get the necessary approval for past downward investment into PPSL to comply with FDI guidelines.


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Keywords: RBI, Paytm, payments aggegator license, digital payments, payment processing
Categories: Payments & Commerce
Companies: Paytm, Reserve Bank of India
Countries: India
This article is part of category

Payments & Commerce

Paytm

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Reserve Bank of India

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