RBI grants Paytm’s PPSL final approval to operate as payment aggregator

Fintech company One97 Communications’ subsidiary, Paytm Payments Services Limited (PPSL), has finally received the Reserve Bank of India’s (RBI) permit to operate as a payment aggregator, the company announced on November 27, Thursday. 

The RBI had granted in-principle approval in August, and on November 26, 2025, issued the Certificate of Authorisation (COA) under the Payment and Settlement Systems Act, 2007, the company said in a regulatory filing.

The regulator has also lifted the November 2022 restrictions that barred PPSL from onboarding new merchants.

PPSL first applied for a payment aggregator licence in November 2020. The RBI rejected the application in November 2022 and had asked the company to reapply to comply with Press Note 3 under FDI rules. 

Following that, PPSL submitted the required application to the Government of India on December 14, 2022, to regularise past downward investment from One97 Communications.

Earlier this month, YourStory had reported that the fintech major was pumping Rs 2,250 crore into PPSL, the wholly owned subsidiary that is being positioned as the nerve centre for all Paytm’s merchant payment options, both online and offline. 

The restructuring was a result of the stricter payment aggregator guidelines issued by the RBI. Newly enforced rules included a clear wall between entities that handle payments and those running other business lines. 

As a result of this, Paytm moved its offline merchant payments business that includes the QR codes, the soundboxes and the card machines at stores, being transferred to PPSL. PPSL itself brought in Rs 2,580 crore revenue in FY2024, which translates to close to half of Paytm’s standalone sales. 

The Rs 2,250 crore capital infusion is said to be completed in cash by the end of this calendar year. Since it is an entirely owned business by parent One97 Communications, the investment will not alter ownership structures. 

(With inputs from PTI)