The Reserve Bank of India has granted in-principle approval to Paytm Payments Services Ltd., enabling it to operate as an Online Payment Aggregator under the Payment and Settlement Systems Act, 2007. The move is expected to enhance India’s digital payment ecosystem and strengthen compliance standards.
The Reserve Bank of India (RBI) has granted in-principle authorisation to Paytm Payments Services Ltd. (PPSL), a wholly-owned subsidiary of One 97 Communications Ltd., to operate as an Online Payment Aggregator under the Payment and Settlement Systems Act, 2007.
In a filing to the exchanges, One 97 Communications stated that the RBI’s approval, dated August 12, 2025, allows PPSL to manage online aggregator operations within the regulatory framework. The authorisation, however, is limited to online payment aggregation and does not extend to offline or other payment activities beyond the current guidelines.
Financial and Regulatory Significance
Industry experts note that the approval reinforces RBI’s structured approach to regulating India’s rapidly expanding digital payments landscape. With the online payments market projected to grow at double-digit rates annually, this licence positions PPSL to capture a larger share of merchant payment processing volumes while ensuring adherence to stringent compliance protocols.
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Analysts further highlight that RBI’s step reflects its broader strategy of strengthening oversight on payment intermediaries, ensuring operational resilience, and protecting consumer interests. For PPSL, the in-principle nod also provides an opportunity to enhance merchant onboarding capabilities, improve transaction security, and innovate value-added services in alignment with evolving market demands.
This development is seen as part of India’s ongoing push to formalise and consolidate the digital payments ecosystem under a unified, regulated structure, thereby balancing innovation with systemic stability.
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