Paytm Set To Revive Wallet Business With RBI In-Principle Nod

Paytm’s subsidiary Paytm Payments Services Ltd (PPSL) has received clearance from the Reserve Bank of India (RBI) to set up a payment system for prepaid payment instruments (PPIs), including digital wallets. This follows a filing with the apex bank under the Payment and Settlement Systems Act, 2007. PSL will need to comply with RBI’s conditions and secure final authorisation, or a Certificate of Authorisation, in order to commence operations.

The company had applied for the fresh PPI licence on December 31, 2024, and received the in-principle authorisation last month. The RBI has directed PSL to undergo a system and cybersecurity audit, with the audit report to be submitted within six months. Once authorised, PSL can issue prepaid payment instruments, including digital wallets, in India.

The fintech major’s wallet business had been disrupted in January 2024 when the RBI barred Paytm Payments Bank from accepting fresh deposits and credit transactions. Paytm had considered multiple options and applied for a fresh PPI authorisation, which could help bring the wallet service back.