Paytm gets RBI’s in-principle nod for wallet licence

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One 97 Communications’ wholly owned subsidiary Paytm Payments Services Limited (PPSL) has received in-principle authorisation from the Reserve Bank of India (RBI) to issue and operate prepaid payment instruments (PPIs), including digital wallets.
In a regulatory filing, Paytm said the RBI granted the approval on November 13 under the Payment and Settlement Systems Act, 2007. The authorisation is subject to compliance with RBI’s Master Directions on Prepaid Payment Instruments.
PPSL will have to complete a system audit, including a cybersecurity audit, and submit the report to the RBI within six months. Failure to meet the deadline will result in the automatic lapse of the in-principle authorisation.
The company can commence issuing prepaid payment instruments only after receiving the final authorisation or Certificate of Authorisation from the central bank.
Paytm had applied for a fresh PPI licence through PPSL in July 2026, marking its first formal step towards reviving its wallet business after the RBI cancelled the banking licence of Paytm Payments Bank in April 2026.
The company disclosed the application in its June-quarter investor presentation, saying that a wallet would add to the completeness of its consumer payments offerings. It also said consumers benefit from having multiple payment options.
The wallet business was earlier operated through Paytm Payments Bank. Following regulatory restrictions imposed on the bank in 2024, customers were barred from adding money to their wallets, although existing balances could be withdrawn.
The RBI cancelled the bank's licence on April 24, 2026, citing non-compliance with licensing conditions and regulatory requirements. The central bank also said the bank's affairs and management were detrimental to depositors' interests and public interest.
The latest in-principle approval brings Paytm a step closer to restoring its wallet offering under PPSL. However, the company will need the RBI's final authorisation before it can resume issuing wallets.

document fetched 2026-11-14 03:05