Paytm (One 97 Communications Limited) has informed that its subsidiary, Paytm Payments Services Ltd (PPSL), has received ‘in-principle’ approval from the Reserve Bank of India (RBI) to function as an online payment aggregator. The announcement was made by the company in a regulatory filing on Tuesday, August 12, 2025.
“Reserve Bank of India (RBI) hereby grants an ‘in-principle’ authorisation to Paytm Payments Services Limited (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) (“PA-PG Guidelines”) and the clarifications issued by RBI regarding the aforementioned guidelines on March 31, 2021,” the RBI letter stated.
This approval also lifts the RBI restriction imposed on November 25, 2022, which had prevented PPSL from onboarding new merchants. The development follows PPSL’s formal application for a payment aggregator licence in August 2024.
RBI further informed 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 of the said guidelines including ‘pay-out’ transactions undertaken on behalf of merchants should not be routed through escrow account designated for PA operations.
Notably, payment services remain a core driver for the company, contributing over 50% of Paytm’s consolidated revenue in the quarter ending June 30, 2025.
