Shares of One 97 Communications Ltd, the parent company of Paytm, are likely to be in focus after its wholly-owned subsidiary Paytm Payments Services Ltd (PPSL) received an ‘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.
In an exchange filing on August 12, 2025, the company said the RBI has granted the approval vide its letter CO.DPSS.AUTH.No.S532/02.27.004/2025-26 dated August 12, 2025. This nod comes nearly a year after PPSL’s application, filed on August 28, 2024.
The authorisation will allow PPSL to continue facilitating merchants in accepting various digital payment instruments in line with the RBI’s regulatory framework. Paytm noted that a copy of the RBI letter is annexed to its disclosure and that the same will be made available on its website.
In its approval letter, the Reserve Bank of India (RBI) has withdrawn the merchant onboarding restrictions placed on Paytm Payments Services Ltd (PPSL) in November 2022, while advising the company to undertake a comprehensive system audit, including a cyber security audit. The regulator has directed PPSL to submit the audit report within six months from the date of the in-principle authorisation letter (August 12, 2025), failing which the approval will lapse automatically and the grant of final authorisation will not be considered.
The development marks a significant regulatory milestone for Paytm’s payments business, which has been working on aligning operations with the central bank’s guidelines for payment aggregators.
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