7 days ago
Paytm payments arm PPSL gets ‘in-principle' approval from RBI to operate as online aggregator
Troubled unicorn Paytm's payments arm, Paytm Payments Services (PPSL), has received 'in-principle' approval from the banking watchdog, the Reserve Bank of India (RBI), to operate as online aggregator.
The company made the disclosure in a filing with the stock exchanges on August 12, stating: 'Regarding the application filed by PPSL, a wholly-owned subsidiary of One 97 Communications, for a Payment Aggregator licence. We would like to inform you that 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.'
In the letter shared by Paytm in its exchange filing, the central bank states that it 'grants an 'in-principle' authorisation to PPSL to operate as an online Payment Aggregator subject to adherence to the Guidelines on Regulation of Payment Aggregators and Payment Gateways dated March 17, 2020 (as updated from time to time) and the clarifications issued by RBI regarding the aforementioned guidelines on March 31, 2021.'
It added that this 'in-principle authorisation only covers online PA operations as defined in PA-PG Guidelines and transactions which do not fall under the ambit … including 'pay-out' transactions undertaken on behalf of merchants should not be routed through escrow account designated for PA operations.'
