Paytm Wallet RBI Approval: Paytm Payments Services Gets In-Principle PPI Nod

Paytm’s wallet business is set for a possible return after its subsidiary Paytm Payments Services Ltd (PPSL) received the Reserve Bank of India’s in-principle authorisation to issue prepaid payment instruments (PPIs). The Paytm wallet RBI approval came in a letter dated November 13, 2026, parent One 97 Communications said in an exchange filing.

The authorisation, granted under the Payment and Settlement Systems Act, 2007, allows PPSL to set up and operate a payment system for issuing and operating PPIs, including digital wallets. It is subject to compliance with the RBI’s Master Directions on prepaid payment instruments, dated August 27, 2021.

PPSL cannot start issuing wallets yet. It must first secure a final authorisation, or Certificate of Authorisation, from the central bank, the company said in the filing.

What the Paytm Wallet RBI Approval Requires

PPSL has to complete a system audit, including a cybersecurity audit, and submit the report to the RBI within six months, according to Entrackr. If it misses that deadline, the in-principle authorisation lapses.

One 97 Communications had disclosed PPSL’s application for a wallet licence in its earnings release for the April–June quarter.

The process mirrors the path Paytm Payments Services took for its payment aggregator business. The RBI granted it in-principle approval as an online payment aggregator on August 12, 2025, and a final Certificate of Authorisation on November 26, 2025. Authorisation for physical payment aggregation followed on December 17, 2025.

Paytm Share Price Reaction and Wallet Background

Shares of One 97 Communications rose as much as 1.8% on Friday to an intraday high of ₹1,960 on the NSE, against Thursday’s close of ₹1,925. The stock ended 0.81% higher at ₹1,940.60, giving the company a market capitalisation of about ₹1.25 lakh crore.

Business Standard reported that the stock reclaimed ₹1,900 for the first time since its listing day in November 2021. It remains below the IPO price of ₹2,150, and had slumped to an all-time low of ₹310 in May 2024.

The stock has gained close to 50% so far in 2026, according to NSE data cited by Upstox. Its 52-week low was ₹930.60, touched on March 30, 2026.

Paytm’s wallet was earlier run through its associate Paytm Payments Bank (PPBL). The RBI barred PPBL from onboarding new customers in March 2022. In early 2024, it also barred further deposits, credits and top-ups, including in wallets, so customers could no longer add money to them.

On April 24, 2026, the regulator cancelled PPBL’s banking licence, saying the bank’s affairs were being conducted in a manner detrimental to the interest of the bank and its depositors. Existing wallet balances could still be withdrawn after the 2024 curbs.

Why It Matters for Fintech and What Comes Next

For the Noida-based fintech, the Paytm wallet RBI approval fills a gap in its consumer payments offering. It also adds to a series of RBI approvals for its payments arm since August 2025.

Management has kept expectations measured. Madhur Deora, president and group chief financial officer, told analysts on the company’s Q3 FY26 earnings call in January that the company would bring the wallet back. He added, however, that wallets should not be seen as “as sticky, as relevant, as important today” as they were three years earlier.

The Unified Payments Interface (UPI) now dominates everyday digital payments in India. Purpose-specific PPIs, such as gift, meal and transit cards, are still finding use, while general-purpose wallets have lost ground.

For fintech leaders and investors, the bigger question is how Paytm positions a revived wallet alongside UPI. Targeted use cases, rather than a general-purpose wallet, may offer the clearer opportunity.

Also Read: RBI Hikes Repo Rate by 25 bps to 5.5%, First Increase Since 2023 | India’s New Unicorns of 2026: Full List and Investors

The next milestone is the system audit report due within six months, followed by the RBI’s final authorisation. Until then, the Paytm wallet RBI approval remains a first step and the company cannot relaunch its wallet. More regulatory and corporate developments are tracked in our business news section.

Company disclosures on PPSL’s licences are available on Paytm’s investor relations website.