Paytm gets RBI’s in-principle nod to revive wallet business; shares hit record high

Image used for representational purposes only. | Photo Credit: Reuters One97 Communications, the parent company of Paytm Payments Services Ltd, on Friday said it had received an in-principle approval from the Reserve Bank of India (RBI) to operate prepaid payment instruments (PPIs), paving the way for a possible revival of its wallet business.PPIs allow users to store money in advance in digital wallets and use it to purchase goods and services, transfer funds and make remittances. During the first quarter of FY27, the company had disclosed that it had applied for a full-fledged PPI licence.The in-principle approval marks a significant step in Paytm’s efforts to re-enter and expand its wallet operations under the RBI’s regulatory framework. However, the company will have to meet the conditions prescribed by the central bank before securing final authorisation.Also Read: The Paytm Payments Bank debacle | ExplainedPaytm’s wallet business had effectively come to a standstill after the RBI, in 2024, imposed stringent restrictions on Paytm Payments Bank, barring it from accepting fresh deposits, credits or wallet top-ups in existing customer accounts. The action followed repeated compliance failures and supervisory concerns. Earlier this year, the central bank cancelled the bank’s licence.In its November 13 communication, the RBI has advised the company to conduct a system audit, including a cybersecurity audit. The System Audit Report is required to be submitted within six months, by June 2027.The financial implications of the approval will become clearer only after the company receives final authorisation. The in-principle nod is subject to compliance with the regulatory conditions stipulated by the central bank.Shares of One97 Communications ended 0.7% higher at ₹1,939.90 on the National Stock Exchange (NSE) on Friday, after rising as much as 1.8% during the session.The regulatory development comes against the backdrop of an improvement in the company’s financial performance. For the quarter ended September, Paytm reported a nearly 10-fold year-on-year (YoY) increase in consolidated net profit to ₹225 crore.Revenue rose 28% YoY to ₹2,648 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased 90% to ₹270 crore. Published - November 13, 2026 04:00 pm IST