In short: On 13 November 2026, the Reserve Bank of India (RBI) gave Paytm Payments Services Limited (PPSL) an in-principle authorisation to set up and operate a system for prepaid payment instruments (PPIs), which include digital wallets. This is not the final licence. PPSL can offer wallets to customers only after it receives final authorisation.
What has happened?
One 97 Communications Limited, the parent company of Paytm, told the stock exchanges (NSE and BSE) that its wholly owned subsidiary, PPSL, had received a letter dated 13 November 2026 from the RBI's Department of Payment and Settlement Systems. The letter grants in-principle authorisation to set up and operate a payment system for issuing and operating PPIs in India.
The authorisation is given under the Payment and Settlement Systems Act, 2007. It is subject to PPSL following the RBI's Master Directions on Prepaid Payment Instruments dated 27 August 2021, as updated from time to time.
What is a prepaid payment instrument?
A PPI lets a user load money in advance and then use it to pay for goods and services. Digital wallets are a common example. According to The Hindu, PPIs can also be used to transfer funds and make remittances.
Why is this only a first step?
An in-principle authorisation is a preliminary clearance. Paytm has itself said that PPSL can offer prepaid instruments, including wallets, to customers only after it receives the final authorisation, also called a Certificate of Authorisation, from the RBI.
- Conditions: The company must meet the conditions set by the RBI before final authorisation.
Background
Paytm said it had disclosed PPSL's application for a wallet licence in its first-quarter earnings release for FY27. Separately, in 2024 the RBI restricted Paytm Payments Bank, barring it from accepting fresh deposits, credits or wallet top-ups in existing customer accounts. This followed repeated compliance failures and supervisory concerns, and effectively halted the wallet business. Earlier this year, the RBI cancelled the bank's licence.
PPSL is a separate entity from the bank. The new approval lets it work towards restarting wallet services under the RBI's framework.
Who is affected?
| Paytm users | Nothing changes immediately. Wallet services from PPSL are not yet available. |
| Paytm and PPSL | They must follow the RBI's directions, complete the system audit and wait for final authorisation. |
What should readers do?
If you are a Paytm user, there is nothing to do right now. Do not assume wallet top-ups or payments through a PPSL wallet are available until Paytm announces that final authorisation has been received. Rely on official company and RBI communications for updates. This article is general information, not investment advice.
Frequently asked questions
Can Paytm restart its wallet immediately?
No. Paytm has said PPSL can offer wallets and other prepaid instruments only after the RBI's final authorisation, or Certificate of Authorisation, is received.
Which law governs this approval?
The in-principle authorisation was granted under the Payment and Settlement Systems Act, 2007, and is subject to the RBI's Master Directions on Prepaid Payment Instruments dated 27 August 2021.
Sources
- TOI Business: Paytm gets RBI prelim nod to operate wallets; shares surge to 52-week high
- India Today: Paytm's wallet business gets a fresh lease of life with RBI nod
- HT Business: Paytm gets preliminary RBI nod for wallet licence; shares hit record high
- The Hindu Business: Paytm gets RBI's in-principle nod to revive wallet business; shares hit record high