Paytm secures RBI’s in-principle approval for PPI licence
In July, The Head and Tale had exclusively reported that Paytm's payment aggregator unit had applied for a fresh wallet licence.
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The development was disclosed by One 97 Communications, Paytm’s parent company, in a stock exchange filing on November 13. The approval has been granted to its wholly owned subsidiary, Paytm Payments Services Ltd (PPSL), which had applied for the PPI licence earlier this year.
In July, The Head and Tale had first reported the development in an exclusive story, stating that PPSL had applied for a fresh wallet licence.
The approval would allow PPSL to issue and operate prepaid wallets directly, giving consumers another payment option alongside UPI and other payment services offered through the Paytm app.
According to the exchange filing, Paytm had mentioned in its Q1 FY2027 earnings release that PPSL has applied for a wallet license. Post grant of final authorisation, PPSL can offer pre-paid instruments, such as wallet, to its customers.
The in-principle authorisation marks progress in Paytm's efforts to bring back its wallet business, which was disrupted following regulatory action against Paytm Payments Bank. The RBI cancelled the banking licence of Paytm Payments Bank on April 24, 2026, and initiated the process of winding up the entity.
The cancellation also removed a regulatory hurdle that had prevented Paytm from independently operating a wallet business or applying for a fresh PPI licence.
Paytm's wallet was once among its flagship consumer payment products. Launched in 2014, it gained significant traction following demonetisation in 2016. At its peak, the company had more than 330 million registered wallet users.
The development comes as Paytm continues to rebuild its payments business following the regulatory setbacks faced by its banking arm. PPSL already holds RBI approvals to operate as an online, offline and cross-border payment aggregator.