Paytm Payments Services Ltd has received in-principle authorisation from the Reserve Bank of India to operate Prepaid Payment Instruments, including wallets. However, the company can begin issuing PPIs only after securing final authorisation from the central bank.
New Delhi, November 13 — One 97 Communications said its wholly owned subsidiary Paytm Payments Services Ltd (PPSL) has received in-principle authorisation from the Reserve Bank of India to operate wallets.
The RBI granted the preliminary authorisation to PPSL for Prepaid Payment Instruments (PPIs) through a letter dated November 13, 2026, One 97 Communications said in a regulatory filing.
The approval is subject to compliance with the RBI Master Directions on Prepaid Payment Instruments dated August 27, 2021.
Final RBI approval still needed
The in-principle approval does not mean PPSL can immediately start issuing wallets or other prepaid payment instruments.
The company said PPSL can commence issuing PPIs only after receiving the final authorisation or Certificate of Authorisation from the RBI.
Before that, the company will have to complete regulatory and audit requirements specified by the central bank.
Cybersecurity audit required
The RBI has advised PPSL to undertake a system audit, including a cybersecurity audit.
The audit must be conducted by an eligible auditor, such as a CERT-In empanelled auditor, a Certified Information Systems Auditor registered with ISACA, or an eligible DISA-qualified professional from ICAI.
The scope of the audit will be governed by the RBI’s Master Directions on Cyber Resilience and Digital Payment Security Controls for non-bank Payment System Operators dated November 5, 2026.
Paytm launched wallet business in 2014
Paytm initially launched its wallet business in 2014.
In 2017, the business was transferred to Paytm Payments Bank as part of regulatory requirements.
The payments bank subsequently faced regulatory restrictions. In 2022, the RBI barred it from onboarding new customers.
In January 2024, the RBI restricted Paytm Payments Bank from accepting fresh deposits and credits, including wallet top-ups, citing persistent compliance concerns.
According to the source, the regulator subsequently cancelled the bank’s licence in April 2026, and the Delhi High Court ordered its winding up in July.
Paytm Q2 profit rises to ₹225 crore
The regulatory development comes as One 97 Communications reports stronger financial performance.
For the September 2026 quarter, the company reported a more than 10-fold increase in profit to ₹225 crore, compared with ₹21 crore a year earlier.
Operating revenue increased 28% year-on-year to ₹2,648 crore.
EBITDA surged 90% to a record ₹270 crore, while the EBITDA margin reached 10% for the first time.
The RBI’s in-principle approval is an important step for PPSL, although the company will still need to complete the required audits and obtain final authorisation before it can begin issuing prepaid payment instruments.
