The RBI asked Paytm Payments Services Ltd. (PPSL), a wholly-owned subsidiary of Paytm, to reapply for its online aggregator licence last week. According to Morgan Stanley’s media statement, this has “increased regulatory uncertainty” for the company. Paytm has been temporarily barred from accepting new online merchants. “Key to monitor are required timelines for obtaining necessary FDI approvals,” Morgan Stanley said. “We are also closely monitoring RBI action regarding final guidelines on digital payment charges and the existing ban on Paytm Payments Bank onboarding new customers.”
