Exclusive: Paytm applies for wallet licence from Reserve Bank of India
09 Jul 2026, 01:55 PMThe move comes less than three months after the Reserve Bank of India formally cancelled Paytm Payments Bank's licence.
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Less than three months after the Reserve Bank of India (RBI) formally cancelled the licence of Paytm Payments Bank, One97 Communications has taken the first step towards reviving one of the products that originally built the company – the wallet.
Paytm Payments Services Ltd (PPSL), the company's payment aggregator subsidiary, has applied to the RBI for a Prepaid Payment Instrument (PPI, popularly known as 'wallet') licence.
The central bank's website shows this application is currently "under process."
The move comes after the winding up of Paytm Payments Bank – that removed a regulatory hurdle that had prevented the payments giant from independently operating a wallet business, or even applying for the licence.
Paytm did not immediately respond to queries.
Long before QR codes and UPI became mainstream, Paytm was synonymous with mobile wallets. The Vijay Shekhar Sharma-led company – which launched its wallet in 2014 – quickly became the country's largest wallet provider, especially after demonetisation in 2016.
In 2017, when Paytm Payments Bank commenced operations, the wallet licence moved under the bank, as required under the regulatory framework. At its peak, Paytm had over 330 million registered wallet users.
Then trouble started in March 2022 when the RBI barred the bank from adding new customers. In January 2024, the central bank stopped it from taking deposits, wallet top-ups, and FASTag recharges. This basically froze the wallet business – and it was the biggest casualty for Paytm.
Finally, in April this year, the RBI cancelled the payments bank licence completely and began winding it down.
But this cancellation also cleared the way for Paytm to apply for a wallet licence on its own again. Although wallets no longer dominate consumer payments the way it once did, but PPI has once again become one of the most sought after licences among the payments operators.
During a recent earnings call, Paytm founder and chief executive Vijay Shekhar Sharma was asked whether the company intended to pursue a fresh wallet licence.
"We remain committed," Sharma said, without providing further details or timelines.
The wallet application also reflects the gradual rebuilding of Paytm's regulatory standing after one of the most turbulent periods in its history. Last year, PPSL received the RBI's payment aggregator licence after a prolonged approval process. It has now approvals to operate as an online payment aggregator, offline payment aggregator and cross-border payment aggregator.
Paytm also restructured its business, bringing several regulated units directly under One97 Communications. The company approved the transfer of its offline merchant payments business to PPSL, to comply to the regulatory norms for payment aggregators.
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