Paytm subsidiary gets RBI in-principle nod for prepaid wallet licence
Paytm Payments Services gets RBI in-principle authorisation to issue prepaid payment instruments, including wallets.
The Reserve Bank of India (RBI) granted in-principle authorisation on November 13 to Paytm Payments Services Limited (PPSL) to issue and operate prepaid payment instruments (PPIs), including digital wallets. PPSL is a wholly owned subsidiary of One 97 Communications.
The approval comes under the Payment and Settlement Systems Act, 2007. Paytm disclosed it in a regulatory filing.
PPSL can commence issuing prepaid payment instruments only after it receives final authorisation, or a Certificate of Authorisation, from the RBI.
The wallet business was earlier run through Paytm Payments Bank, whose licence the RBI cancelled on April 24, 2026.
The RBI cited non-compliance with licensing conditions and regulatory requirements. It also said the bank’s affairs and management were detrimental to depositors’ interests and public interest.
After restrictions imposed on the bank in 2024, customers were barred from adding money to their wallets, although existing balances could be withdrawn.
Paytm applied for a fresh PPI licence through PPSL in July 2026. It disclosed the application in its June-quarter investor presentation, saying a wallet would add to the completeness of its consumer payments offerings and that consumers benefit from having multiple payment options.
The authorisation is subject to compliance with the RBI’s Master Directions on Prepaid Payment Instruments.
PPSL must 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.
