Paytm gets preliminary nod to operate wallets

New Delhi, Nov 13 (PTI) One 97 Communications on Friday said its wholly owned subsidiary Paytm Payments Services Ltd (PPSL) has got in-principle authorisation from the Reserve Bank to operate wallets.

    In-principle authorisation granted by the Reserve Bank of India to Paytm Payments Services Limited for Prepaid Payment Instruments through a letter dated November 13, 2026, One 97 Communications said in a regulatory filing .

    Approval is subject to adherence to the RBI Master Directions on Prepaid Payment Instruments dated August 27, 2021, it said.

     PPSL is advised to undertake a System Audit, including Cyber Security audit, to be conducted by a CERT-In empanelled auditor or a Certified Information Systems Auditor (CISA) registered with Information System Audit and Control Association (ISACA) or by a holder of a Diploma in Information System Audit (DISA)qualification of the Institute of Chartered Accountants of India (ICAI), it said.

    The scope and coverage of the Audit to be undertaken is contained in the Master Directions on CyberResilience and Digital Payment Security Controls for non-bank Payment System Operators dated November 5, 2026, it said.

    "It may also be noted that PPSL can commence issuance of Prepaid Payment Instruments only after grant of Final Authorisation/Certificate of Authorisation," it said.

    Paytm launched its wallet business in 2014 and subsequently, in 2017, it transferred the business to Paytm Payments Bank with regulatory requirements.

    The business came under pressure in 2022, when the RBI barred the ⁠bank from onboarding new customers.

    In January 2024, the RBI barred Paytm Payments Bank Ltd from accepting fresh deposits and credits, including wallet top-ups, citing persistent compliance concerns.

    The regulator subsequently cancelled PPBL's banking licence in April 2026, citing concerns over its operations and management. The Delhi High Court ordered the bank's winding up in July.

     For the second quarter ended September 2026, One 97 Communications reported an over 10-fold rise in profit to Rs 225 crore from Rs 21 crore a year ago.

    Operating revenue rose 28 per cent YoY to Rs 2,648 crore, driven by sustained momentum across merchant and consumer businesses, expanded monetisation and AI adoption.

    Ebitda rose 90 per cent YoY to a record Rs 270 crore, with Ebitda margin expanding to 10 per cent, reaching double digits for the first time and reflecting stronger operating profitability.

(This story has not been edited by THE WEEK and is auto-generated from PTI)