Paytm gets RBI's in-principle nod to revive wallet business through new subsidiary

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Paytm gets RBI's in-principle nod to revive wallet business through new subsidiary
Paytm’s subsidiary PPSL has received the RBI’s in-principle approval to issue prepaid instruments such as wallets, but it must submit a system audit report within six months.
Paytm Payments Services Limited (PPSL), a wholly-owned subsidiary of One 97 Communications, has received the Reserve Bank of India's in-principle authorisation to set up and operate a payment system for issuing prepaid payment instruments (PPIs), the category that covers digital wallets. The company informed the exchanges in a regulatory filing on Friday.
The RBI's Department of Payment and Settlement Systems granted the approval under the Payment and Settlement Systems Act, 2007, in a letter dated 13 November. It responds to an application PPSL made on 31 December 2025. The approval is subject to compliance with the RBI's Master Directions on Prepaid Payment Instruments of 27 August 2021, as updated from time to time.
The nod is only a first step. PPSL can begin issuing prepaid instruments only after it receives final authorisation, or a Certificate of Authorisation. To get there, it must commission a system audit, including a cybersecurity audit, from a CERT-In empanelled auditor or a qualified information systems auditor.
The audit must follow the RBI's Master Directions on Cyber Resilience and Digital Payment Security Controls for non-bank payment system operators, dated 5 November 2026. The report must reach the RBI within six months, failing which the in-principle approval lapses automatically and final authorisation will not be considered. The RBI also reminded PPSL that any change in its shareholding or ownership would require prior approval under its 4 July 2022 norms for non-bank payment system operators.
One 97 said it had flagged the wallet licence application in its Q1 FY2027 earnings release.
The wallet business was earlier run through Paytm Payments Bank, and after regulatory restrictions in 2024, customers were barred from adding money to their wallets, though existing balances could be withdrawn. The RBI cancelled the bank's licence on 24 April 2026, citing non-compliance with licensing conditions. Paytm has said a wallet would add to the completeness of its consumer payments offerings.
On the bourses, Paytm's stock was affected by the announcement. The shares traded at Rs 1,931.30 on the NSE at 3.06 pm, up 0.33% from the previous close of Rs 1,925. They had dipped to Rs 1,906.70 around midday. The bulk of the recent gain came a day earlier: the stock closed at a fresh 52-week high of Rs 1,925 on 12 November after a 7.31% jump, and has nearly doubled from its 52-week low of Rs 930.60 on 30 March 2026. It still trades below the Rs 2,150 IPO issue price.

document fetched 2026-11-14 03:05