Paytm (One97 Communications) shares gained more than 1% in early trading after the RBI (Reserve Bank of India) granted Paytm Payments Services Ltd (PPSL) extra time to resubmit their payment aggregator (PA) licence application. Paytm’s share price reached a high of Rs 633 in early trading, up from a low of Rs 619 on Friday.

The banking regulator said that the business may continue with its online aggregation even as it awaits clearance from the government for previous FDI investments from its parent firm, One97 Communication (OCL), into PPSL.

“The letter from RBI says that PPSL can continue with the Online Payment Aggregation business, while it awaits approval from Government of India (‘GoI’) for past investment from OCL into PPSL as per FDI Guidelines,” said Paytm in a filing.

According to the letter from the RBI, PPSL will have fifteen days after getting permission from the government to apply for permission to work as an online payment aggregator. Nevertheless, if the government makes an unfavourable decision, the RBI must be notified promptly. At this time, PPSL will be able to continue its online payment aggregation service for current partners without onboarding any new merchants, according to the RBI.