MUMBAI (Reuters) – India’s banking regulator has declined a cost aggregator licence for the One 97 Communications Ltd unit that owns the favored Paytm model, asking it to reapply with 120 days after assembly sure situations.

The regulator requested Paytm Payments Services Ltd, a 100% subsidiary of One 97 Communications, to reapply after getting the required approvals for overseas direct funding within the firm to adjust to present guidelines, the corporate stated in a notification to inventory exchanges on Saturday.

Payment aggregators, platforms that carry collectively numerous on-line cost choices, should be licensed by India’s central financial institution and banking regulator, Reserve Bank of India.

In its communication to exchanges, One 97 Communications stated it doesn’t anticipate the delay in securing a cost aggregator licence to affect its enterprise.

The regulator additionally requested that Paytm Payments Services not carry onboard new on-line retailers till it reapplies for the licence.

(Reporting by Ira Dugal; Editing by William Mallard)