Synopsis: The RBI has granted Paytm Payments Services Ltd (PPSL), a wholly owned subsidiary of One 97 Communications, in-principle authorisation to issue and operate prepaid payment instruments (PPIs), the company told the exchanges on 13 November. PPSL can offer wallets once it gets final authorisation.
One 97 Communications, the parent of Paytm, said on 13 November 2026 that the Reserve Bank of India has given its subsidiary Paytm Payments Services Limited (PPSL) an in-principle authorisation under the Payment and Settlement Systems Act, 2007, to set up and operate a payment system for issuing prepaid payment instruments.
The RBI letter is dated 13 November 2026. The approval is subject to PPSL following the RBI’s Master Directions on Prepaid Payment Instruments dated 27 August 2021, as amended. PPSL had applied for a wallet licence, which is one type of PPI.
What happens next
This is not yet a full licence. According to the company, once PPSL receives final authorisation or a Certificate of Authorisation, it will be able to offer prepaid instruments such as wallets to customers.
Prepaid payment instruments are stored-value products such as mobile wallets and prepaid cards, which customers load in advance and use to pay merchants or other users. Banks and non-bank companies can issue them, but non-banks need RBI authorisation under the Payment and Settlement Systems Act, which is the approval PPSL has now cleared at the first stage.
Why it matters
Wallets were where Paytm began, but its wallet business sat inside Paytm Payments Bank, which the RBI barred in early 2024 from accepting fresh deposits or wallet top-ups. An in-principle nod for PPSL, Paytm’s payment aggregator arm, opens a route for the group to offer wallets again through a wholly owned subsidiary rather than the bank. The final authorisation is the step to watch.
Sources
- NSE filing: One 97 Communications on PPSL in-principle PPI authorisation, 13 November 2026
- RBI: Master Directions on Prepaid Payment Instruments
- Paytm: company website
Disclaimer: This article is for information purposes only and is not investment advice.
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