Home / Business and Economy / Paytm Wallet Revival Inches Closer
Paytm Wallet Revival Inches Closer
14 Nov
Summary
- Paytm's subsidiary received preliminary regulatory clearance for its digital wallet.
- A mandatory cybersecurity audit must be completed within six months.
- The approval is for Paytm Payments Services Ltd (PPSL), not the payments bank.
Paytm's subsidiary, Paytm Payments Services Ltd (PPSL), has been granted preliminary approval by the Reserve Bank of India (RBI) to re-launch its digital wallet services. This decision marks a significant step towards recovering lucrative, high-margin revenue streams that were previously restricted due to compliance issues.
The approval is contingent upon PPSL successfully completing a comprehensive system and cybersecurity audit. This audit must be concluded and submitted to the RBI within a strict six-month timeframe, otherwise the tentative approval will lapse. This process is separate from the issues faced by Paytm Payments Bank.
The original wallet services, operated through Paytm Payments Bank, were suspended by the RBI in early 2024 due to concerns over KYC, governance, and compliance. The new approval pertains to PPSL, a wholly owned subsidiary overseeing payment gateways and business services, not the banking entity whose license was cancelled in April 2026.
Upon final approval, customers can expect the return of Paytm wallets, operating independently from the payments bank. These wallets will allow users to store balances, add funds, and facilitate payments. The expanded services may also include prepaid cards and integration with UPI for enhanced payment capabilities.
