Shares of Paytm’s parent company, One97 Communications, rose as much as 6%, hitting an intraday high of Rs  1,187 on Wednesday, 13 August, after the Reserve Bank of India (RBI) awarded its subsidiary, Paytm Payments Services Ltd. (PPSL), an in-principle approval to operate as an online payment aggregator.

PPSL, a wholly owned subsidiary of One97 Communications, can now resume merchant onboarding, which had been on hold since November 2022 due to an RBI freeze. In its statement, the central bank relaxed the restrictions while directing the company to do a full system assessment, including a cybersecurity evaluation.

The report must be delivered within six months; otherwise, the provisional approval will lapse and no final licence will be considered.

When the onboarding ban was first implemented, Paytm’s management downplayed the impact, claiming that it mainly affected new online merchants.  During that time, Antfin exited the company fully through block agreements, similar to Berkshire Hathaway’s previous divestment, both of which were sold at a loss.

The regulatory development came only weeks after Paytm reported its first-ever June quarter profit. One97 Communications recorded a total net profit of Rs 123 crore for the three months ending 30 June 2025, a significant improvement over a loss of Rs 839 crore the previous year.  The improvement was driven by strong loan growth and tighter cost management, particularly in marketing and labour spending.

EBITDA for the quarter was Rs 72 crore, a reversal of the prior two quarters’ losses, boosted by improved operating leverage and margins across business lines. Revenue from operations increased 28% year on year to Rs 1,918 crore, while total income, including other income, reached Rs 2,159 crore.

At 12:42 pm, the shares of Paytm were trading 4.78% higher at Rs 1,173.60 on NSE. 

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