Paytm Gets RBI In-Principle Approval to Restart Wallet Business

Paytm Payments Services Limited (PPSL), a wholly owned subsidiary of One 97 Communications, has received in-principle authorisation from the Reserve Bank of India (RBI) to set up and operate a payment system for issuing Prepaid Payment Instruments (PPIs), including digital wallets. The approval is subject to compliance with RBI’s PPI regulations and does not yet permit Paytm to launch wallet services. PPSL must obtain the RBI’s final authorisation or Certificate of Authorisation before issuing PPIs. The development sent One 97 Communications’ shares to a record ₹1,960, with the stock rising as much as 1.8% during the session.

The RBI has attached important compliance conditions to the approval. PPSL must undertake a system audit, including a cybersecurity audit, through an eligible auditor and submit the audit report to the RBI within six months of the November 13 authorisation letter. The audit must cover RBI’s cyber-resilience and digital-payment security requirements for non-bank payment system operators. The approval marks a significant regulatory step for Paytm after the RBI cancelled Paytm Payments Bank’s banking licence in April 2026, but the company still needs to demonstrate compliance before it can resume wallet issuance.

Want to deepen your expertise beyond today’s news?

#Bankingnews