One97 Communications, the parent company of Paytm, has applied for a Prepaid Payment Instrument (PPI) licence from the Reserve Bank of India (RBI). This is another step by the fintech firm towards rebuilding its digital payments business. This will allow it to restart wallet services under its own entity if approved.
If the RBI grants the PPI licence, Paytm could relaunch its digital wallet services. It offers customers another payment option alongside UPI.
The move will also increase user engagement within its app, and strengthen its merchant payment ecosystem.
Further, the license will diversify its payments business beyond bank partnerships.
Paytm’s regulatory challenge:
Paytm Payments Bank was under regulatory scrutiny for compliance issues over several years. Restrictions were imposed on onboarding new customers were followed by tighter supervisory actions, and in April 2026, the RBI cancelled the bank’s licence, citing continued breaches of licensing conditions and regulatory requirements.
RBI had also confirmed that the bank had sufficient liquidity to repay depositors during the winding-up process.
The Reserve Bank of India (RBI) has imposed restrictions on PPBL, barring fresh deposits and top-ups effective February 29, 2024.
Paytm Payments Bank Limited (PPBL) is associated with One97 Communications Limited (OCL), with 49% of the paid-up share capital held by OCL. Vijay Shekhar Sharma, the founder of One97 Communications, owns a 51% stake in the bank.
Paytm Wallet Services To Restart Soon As Company Applies PPI License From RBI
