Paytm Payments Services Limited (PPSL), a subsidiary of One 97 Communications, has received an “in-principle” approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator. This means Paytm can now start adding new merchants again — something that had been stopped since November 25, 2022.
The approval was announced in a regulatory filing by the company on Tuesday.
Long Wait for Approval
Paytm had applied for this licence in March 2020, but the approval took time due to compliance issues related to Foreign Direct Investment (FDI). The nod from RBI comes soon after Chinese company Alibaba completely sold its stake in One 97 Communications.
Conditions from RBI
RBI has allowed PPSL to operate as a payment aggregator, but with certain conditions:
- PPSL must follow all RBI guidelines for Payment Aggregators and Payment Gateways.
- Any services outside this scope, such as merchant payouts, must be done separately and not through the payment aggregator’s accounts.
- A system and cybersecurity audit must be conducted by certified professionals (like CERT-In empanelled auditors, CISA, or DISA-certified experts).
- The audit must cover compliance with RBI’s cybersecurity and data storage rules.
- PPSL has six months from August 12, 2025, to submit the audit report. If it fails, the approval will be automatically cancelled.
- Any changes in the company’s ownership or shareholding will need RBI’s prior approval.
Market Reaction
Investors welcomed the news. On Wednesday, shares of One 97 Communications surged nearly 5% to hit a 52-week high of ₹1,173.70 on the BSE. A day earlier, the stock had closed at ₹1,119.95.
