Paytm Receives RBI’s In-Principle Approval for Wallet Services

Paytm has taken a significant step towards resuming its wallet services, with its subsidiary, Paytm Payments Services Limited (PPSL), receiving in-principle authorisation from the Reserve Bank of India (RBI). One97 Communications, the parent company of Paytm, said the central bank granted the authorisation on November 13 for issuing prepaid payment instruments (PPIs). However, the RBI has directed the company to conduct a system audit, including an assessment of its cybersecurity infrastructure.

PPSL will be able to issue prepaid payment instruments only after completing the system audit and securing final approval from the RBI. Paytm had transferred its wallet business, launched in 2014, to Paytm Payments Bank Limited (PPBL) in 2017. However, following allegations of regulatory non-compliance, the RBI imposed restrictions in January 2024, preventing the bank from accepting fresh deposits and credits. In April 2026, the central bank cancelled PPBL’s banking licence. Against this backdrop, the latest in-principle authorisation marks an important development for Paytm’s payments business.