Paytm Payments Services Gets RBI’s Payment Aggregator Licence

SUMMARY

In a filing with the exchanges, the fintech giant said that the central bank granted the certification of authorisation to its subsidiary on November 26

This comes three months after PPSL received an in-principle authorisation from the RBI to operate as a PA in August this year

This comes weeks after Paytm’s board approved a plan to invest up to INR 2,250 Cr via a right issue in PPSL to support its working requirements and bolster its net worth

Fintech major Paytm’s subsidiary, Paytm Payments Services Limited (PPSL), has secured final authorisation from the Reserve Bank of India (RBI) to operate as a payment aggregator (PA).

In a filing with the exchanges, the fintech giant said that the central bank granted the certification of authorisation (CoA) to its subsidiary yesterday.

“… We would like to inform to you that Reserve Bank of India… on November 26, 2025 has granted CoA to Paytm Payments Services Limited (PPSL), a wholly-owned subsidiary of One 97 Communications Limited…, to operate as a payment aggregator…,” read the filing.

This comes three months after PPSL received an in-principle authorisation from the RBI to operate as a PA in August this year.

With this, Paytm’s wholly-owned subsidiary will be able to deploy and manage its point of sale (PoS) devices and soundboxes across merchant outlets. The authorisation will enable the company to offer diverse payment methods such as credit cards, UPI, wallets, and others to its clients.

Having a PA licence will also help the entity save on payment processing charges, which range anywhere between 0.5% to 2 % depending on the volume. The licence will also help it streamline merchant onboarding and checkout experience.

This comes weeks after the fintech giant’s board approved a proposal to invest up to INR 2,250 Cr via a right issue in PPSL. At the time, the company said that the infusion will help its payments arm support its working requirements and bolster its net worth.

The approval comes close on the heels of the company undertaking a mega restructuring exercise last month, which saw its board approve a plan to transfer its offline merchant payments business to PPSL to comply with RBI directions.

The announcements coincide with Paytm’s healthy financial performance. The fintech major continued to remain in the black in Q2 FY26 and clocked a net profit of INR 21 Cr, albeit down 98% YoY. This was largely because its year ago numbers included a one-time gain of INR 1,345 Cr from sale of its entertainment ticketing business, Paytm Insider, to Eternal.

In Q2 FY26, the company also took a hit on the back of a one-time impairment loss of INR 190 Cr against a loan given to its now-shut real money gaming joint venture First Games. Meanwhile, operating revenues increased 24% YoY and 7% sequentially to INR 2,061 Cr during the quarter under review.

As a result of the healthy financial performance, Paytm’s stock has been on an upswing. Shares of the company have risen more than 45% in the past year, and are up 26.4% on a year-to-date (YTD) basis.

Booking profits, BNP Paribas Financial Markets and Integrated Core Strategies (Asia), earlier this week, sold shares worth INR 1,740.8 Cr in the listed fintech major via multiple block deals. Last week, another investor Elevation Capital sold 1.19 Cr shares in the company via two block deals for a total of INR 1,556 Cr.

Shares of Paytm ended yesterday’s trading session 3.48% higher at INR 1,286.35 on the BSE.