Paytm secures RBI’s in-principle nod for Payment Aggregator licence

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.

This approval follows PPSL’s re-application for the licence in September 2024, after its earlier application was returned by the central bank in November 2022. The licence will allow Paytm to onboard new online merchants, expand payment volumes, and boost revenues, while removing regulatory uncertainty and strengthening its position in the digital payments market.

As per the RBI’s letter, PPSL must adhere to the guidelines for payment aggregators and gateways issued in March 2020 and subsequent clarifications.

The development comes soon after Paytm’s quarterly results. The company’s revenue from operations increased by 28% year-on-year to Rs 1,918 crore in Q1 FY26 from Rs 1,501 crore in Q1 FY25. It also turned profitable, recording a net profit of Rs 123 crore in Q1 FY26, compared to a loss of Rs 840 crore in Q1 FY25.