Paytm has received an important regulatory clearance as the Reserve Bank of India (RBI) granted in principle authorisation to its wholly owned subsidiary, Paytm Payments Services Limited (PPSL), to issue Prepaid Payment Instruments (PPIs), including digital wallets. 

The announcement was made on 13 November 2026, sending shares of parent company One 97 Communications to a record high of Rs 1,960. The approval marks a major step towards restarting Paytm’s wallet services after more than two years of regulatory restrictions affecting its payments business.

Prepaid Payment Instruments allow users to store money digitally and use the available balance to make payments. Digital wallets are a common example of these instruments.

With the latest approval, PPSL can move forward with establishing the systems required to offer wallet services. However, the company cannot begin issuing PPIs immediately. It must first complete the necessary system and cybersecurity audits and obtain final authorisation from the RBI.

Under RBI guidelines, the system audit report must generally be submitted within six months of receiving in principle approval. The regulator will review the report before granting the final Certificate of Authorisation.

Paytm’s wallet operations faced major restrictions after the RBI barred Paytm Payments Bank from accepting fresh deposits and wallet top ups in 2024 due to regulatory concerns. The RBI subsequently cancelled the bank’s licence on 24 April 2026.

The latest approval is different because it applies to Paytm Payments Services, a separate wholly owned subsidiary of One 97 Communications.

The clearance could help Paytm strengthen its digital payments business and expand its financial services offerings. However, the actual relaunch of wallet services will depend on completing the audit process and receiving the RBI’s final approval.

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