Core Insights - One97 Communications' subsidiary, Paytm Payments Services Limited (PPSL), has received authorization from the Reserve Bank of India (RBI) to operate as a payment aggregator for offline and cross-border transactions, enhancing its capabilities in the payment sector [1] - This approval allows PPSL to hold payment aggregator licenses across all major segments, including online, offline, and cross-border payments, supporting One97's long-term payment acceptance strategy [1] Group 1 - PPSL initially applied for the payment aggregator license in November 2020, but the RBI declined the application in November 2022, requesting a resubmission to ensure compliance with foreign direct investment (FDI) regulations [2] - To meet the RBI's requirements, PPSL submitted a new application on December 14, 2022, seeking approval for a previous downward investment from One97 Communications in accordance with FDI guidelines [3] - One97 Communications completed an investment of Rs22.50 billion ($250 million) into PPSL through a rights issue of equity shares, which was part of the compliance process with the RBI [3] Group 2 - Last month, One97 Communications announced the receipt of the RBI's online payment aggregator license, coinciding with the launch of an updated version of its payments application featuring a simplified interface and new AI tools [4] - The updated app includes AI features for expense tracking, balance management, and personalized insights, aimed at improving user experience in digital transactions [4] - In June, Paytm introduced personalized UPI IDs, allowing users to conduct UPI transactions without disclosing their mobile numbers, thereby enhancing user privacy [5]

Shares of One 97 Communications surge to the highest level in over three years after its unit received approval from India’s central bank to operate as an online payment aggregator https://t.co/hi4JTa3hUD ...