Paytm’s parent company, One 97 Communications, announced in a Tuesday filing that its subsidiary, Paytm Payments Services, has secured approval from the Reserve Bank of India to operate as an online payment aggregator.
The move also removes restriction on Paytm Payments Services Limited from onboarding new merchants which was imposed on the company on November 25, 2022.
Paytm Payments Services Gets RBI Nod
“Paytm Payments Services Limited (PPSL), a wholly-owned subsidiary of One 97 Communications Limited (OCL or the Company), for a Payment Aggregator (PA) licence. We would like to inform you that Reserve Bank of India (“RBI”) has granted ‘in-principle’ authorisation to PPSL vide its letter…dated August 12, 2025, to operate as an Online Payment Aggregator under the Payment and Settlement Systems Act, 2007,” the filing said.
The company had applied for the permit in March 2020 but the approval was stuck due to certain compliance issues related to Foreign Direct Investment in the company.
What Were RBI’s Restrictions On Paytm?
RBI imposed restrictions on Paytm Payments Bank in January 2024. This led to a major decline in Paytm’s revenue. To overcome this setback, Paytm focused on cutting expenses, selling non-core assets like Paytm Insider and restructuring the merchant lending business.
RBI’s decision will provide great relief to Paytm. After almost three years of regulatory uncertainty, Paytm will be able to resume merchant onboarding and move forward towards expanding its digital payment infrastructure.
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