Shares of One97 Communications, which owns and operates digital payments firm Paytm, rose on Monday after it said it had been given an additional 15 days from the RBI to resubmit its application for payment aggregation services. Paytm shares rose 3.2% or 0.5% to close at Rs 622.5 per share on the BSE.

Paytm subsidiary Paytm Payments Services Ltd (PPSL) can continue with its online payment aggregation business as it awaits government approval for past investments by One97 Communications under FDI guidelines, the digital payments firm said, citing a letter from the Reserve Bank of India.

The latest extension comes after the RBI suspended Paytm Payment Services (PPSL) online merchant onboarding in November 2022. It granted the company 120 days to resubmit its application seeking authorization to provide payment aggregation services for online merchants.

“According to the letter from the RBI, upon receipt of GoI’s approval, PPSL will have fifteen days to submit an application seeking authorisation for PPSL to operate as an online PA. However, in case of any adverse decision by the GoI, it shall be notified to Immediate RBI. In the process, PPSL can continue to conduct online payment aggregation business for existing partners without onboarding any new merchants,” Paytm said in a regulatory filing.