Paytm arm PPSL gets RBI approval to operate as payment aggregator

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Fintech firm One97 Communications said its subsidiary, Paytm Payments Services Limited, has received the RBI permit after a long wait to operate as a payment aggregator.

The Reserve Bank of India granted in-principle approval to Paytm Payments Services Limited in August to operate as an online payment aggregator.

"...Reserve Bank of India on November 26, 2025, has granted Certificate of Authorization (COA) to Paytm Payments Services Limited (PPSL)...to operate as a Payment Aggregator under the Payment and Settlement Systems Act, 2007," One97 Communications said in a regulatory filing.

The banking regulator had also removed restrictions from Paytm Payments Services Limited on onboarding new merchants, which were imposed on the company on November 25, 2022.

In November 2020, PPSL applied for a licence with the Reserve Bank of India (RBI) to operate as a payment aggregator under the guidelines on Regulation of Payment Aggregators and Payment Gateways.

However, in November 2022, the RBI rejected PPSL's application and asked the company to resubmit it, so as to comply with Press Note 3 under FDI rules.

Subsequently, the company filed the required application on December 14, 2022 with the Government of India for the past downward investment from OCL (One97 Communications Ltd) into the company in order to comply with Press Note 3 prescribed under FDI guidelines.