Paytm Payments RBI: Paytm's PPSL to become a payment aggregator, RBI approves

Paytm Payments RBI: After a long wait, Paytm Payments Services Limited (PPSL) has received RBI approval to operate as a payment aggregator. The RBI issued the company a Certificate of Authorization on November 26, 2025, lifting a two-year-old restriction on onboarding new merchants. PPSL received this approval after completing compliance with FDI guidelines and Press Note 3, giving the company's digital payments business a new impetus.

Paytm Payments RBI: After a long wait, Paytm Payments Services Limited (PPSL), a subsidiary of fintech company One97 Communications, has finally received RBI approval to operate as a payment aggregator. This approval is considered a major relief and a significant step for Paytm's digital payments business.

PPSL Receives Certificate of Authorization from RBI

On November 26, 2025, the RBI formally approved PPSL to operate as a payment aggregator under the Payment and Settlement Systems Act, 2007. One97 Communications informed the stock exchanges that the company has been issued a Certificate of Authorization (COA) by the RBI. With this, the company will now be able to fully operate online payment aggregation services. The RBI granted in-principle approval to PPSL in August 2025, after which the formal COA was awaited.

Restrictions on onboarding new merchants lifted

The RBI had banned PPSL from adding new merchants until November 2022. Now, with the approval, this restriction has been lifted, allowing the company to onboard new merchants to its platform. This move raises hopes of a new impetus for Paytm's payments business.

The Complete Journey of the License Application

PPSL first applied for a Payment Aggregator License in November 2020. However, the RBI rejected the application in November 2022, directing the company to reapply and ensure compliance with FDI regulations, specifically Press Note 3.

FDI Guidelines and Compliance with Press Note 3

Press Note 3 is a policy issued by the Government of India in April 2020. Under this policy, government approval is mandatory for any foreign direct investment (FDI) coming from countries bordering India (specifically China). PPSL filed the necessary application with the Government of India on December 14, 2022, to comply with these regulations. This step was taken to bring the previous investments made by One97 Communications Limited (OCL) in the company into compliance with Press Note 3.

Positive Impact on Paytm's Business

This RBI approval is significant for Paytm in several ways. This will further strengthen the company's position in the online payments ecosystem. Rapid expansion with new businesses and merchants will be possible. The elimination of regulatory uncertainties will boost investor confidence. Fintech experts believe that the clearance of PPSL's license will enable the company to reaffirm its competitive advantage in the digital payments industry.

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