Paytm finally gets RBI nod to operate as a payment aggregator
The approval, dated August 12, 2025, follows the company’s application for a Payment Aggregator licence filed last year.
Paytm Payments Services Ltd., a wholly owned subsidiary of One 97 Communications Ltd., 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.
The RBI has also told Paytm to carry out a system and cybersecurity audit by an approved auditor—either one empanelled with CERT-In, a Certified Information Systems Auditor (CISA) registered with ISACA, or someone holding a DISA qualification from the Institute of Chartered Accountants of India.
The approval, dated August 12, 2025, follows the company’s application for a Payment Aggregator licence filed last year.
Last year, PPSL received government approval for downstream investment from its parent, One 97 Communications Limited. With this approval from the Ministry of Finance, the Department of Financial Services in place, PPSL had resubmitted its payment aggregator application.
This authorisation is subject to compliance with the Guidelines on Regulation of Payment Aggregators and Payment Gateways issued in March 2020 and subsequent clarifications, according to a statement.
The RBI also withdrew restrictions on merchant onboarding that were imposed on the company in November 2022. The authorisation covers only online payment aggregation as defined under the guidelines.
In a formal move dated November 25, 2022, the RBI rejected PPSL’s application for a Payment Aggregator (PA) licence and imposed a regulatory restriction — prohibiting the unit from onboarding any new online merchants.
After years of facing regulatory headwinds, Paytm seems to have finally found its footing.
The RBI’s 2024 ban on Paytm Payments Bank operations, which sent its stock to Rs 317, forced a strategic pivot toward merchant monetisation and cost optimisation.
The company doubled down on its payments and lending businesses, cut expenses using AI, and shed non-core assets like Insider.in and its PayPay stake, boosting cash reserves.
This sharper focus delivered Paytm’s first-ever quarterly net profit (excluding one-time gains), lifting shares to over Rs 1,060. Brokerages have raised targets, signalling renewed investor confidence in the fintech’s turnaround and long-term profitability.
The approval comes against the backdrop of Antfin (Netherlands) Holding B.V., an arm of Chinese tech giant Alibaba and a key shareholder in One97 Communications, selling over 3.72 crore shares worth about Rs 3,980 crore through bulk deals on the BSE on Tuesday.