Paytm Payments Services Limited (PPSL), a wholly-owned subsidiary of One 97 Communications Limited, has received in-principle authorisation from the Reserve Bank of India (RBI) to operate as an online payment aggregator under the Payment and Settlement Systems Act, 2007.
The approval comes after PPSL’s re-application in September 2024, following the RBI’s return of its earlier application in November 2022. This licence will enable Paytm to onboard new online merchants, expand payment volumes, and boost revenues — while removing regulatory uncertainty and further strengthening its position in India’s digital payments market.
As per the RBI’s letter, PPSL must comply with the March 2020 payment aggregator guidelines and all subsequent clarifications.
The development closely follows Paytm’s Q1 FY26 results, where the company reported:
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Revenue from operations: ₹1,918 crore (up 28% YoY from ₹1,501 crore in Q1 FY25)
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Net profit: ₹123 crore (vs. a loss of ₹840 crore in Q1 FY25)
The RBI nod marks a major regulatory milestone for Paytm, paving the way for renewed growth in the highly competitive fintech space.
By: Arushi Agarwal
