Paytm Gets RBI In-Principle Nod for Wallet Licence Through PPSL

One 97 Communications’ wholly owned subsidiary Paytm Payments Services Limited has received in-principle authorisation from the Reserve Bank of India to issue and operate prepaid payment instruments, including digital wallets. Paytm said the approval was granted on November 13 under the Payment and Settlement Systems Act, 2007.

The approval is not the final go-ahead to start issuing wallets. PPSL must still receive final authorisation, or a Certificate of Authorisation, from the central bank before it can commence issuing prepaid payment instruments.

The in-principle authorisation is subject to compliance with 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.

If PPSL misses that deadline, the in-principle authorisation will automatically lapse. That makes the audit process the immediate checkpoint before Paytm can move closer to restoring its wallet offering.

Paytm applied for a fresh PPI licence through PPSL in July 2026, describing it as a step toward reviving its wallet business after the RBI cancelled the banking licence of Paytm Payments Bank in April 2026. The company had told investors that a wallet would add to the completeness of its consumer payments offerings.

The wallet business was previously operated through Paytm Payments Bank. After regulatory restrictions in 2024, customers were barred from adding money to wallets, although existing balances could be withdrawn.

The latest approval brings Paytm closer to restoring a wallet product under PPSL, but it does not immediately restart wallet issuance. The next steps are completing the required audits, submitting the report to RBI, and securing final authorisation.

For users and market watchers, the practical takeaway is simple: this is a regulatory milestone, not a product relaunch. Paytm can resume issuing wallets only after the RBI grants final authorisation.