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Paytm Subsidiary Secures Crucial RBI License
27 Nov
Summary
- Paytm's subsidiary, PPSL, received RBI's payment aggregator permit.
- RBI lifted restrictions on PPSL onboarding new merchants.
- Paytm is infusing Rs 2,250 crore into PPSL for strategic growth.
Paytm Payments Services Limited (PPSL), the wholly owned subsidiary of One97 Communications, has secured the Reserve Bank of India's (RBI) essential permit to function as a payment aggregator. The RBI issued the Certificate of Authorisation on November 26, 2025, following an in-principle approval granted in August. This development marks a significant step as the RBI has also lifted the restrictions that previously barred PPSL from onboarding new merchants since November 2022.
Following a rejected application in November 2022, PPSL re-applied to comply with FDI rules, submitting its application to the Indian government on December 14, 2022. This restructuring was necessitated by updated RBI guidelines for payment aggregators, requiring a clear separation between payment handling entities and other business lines. Consequently, Paytm has integrated its offline merchant payment operations, including QR codes and card machines, into PPSL.
To bolster its subsidiary, Paytm announced an infusion of Rs 2,250 crore into PPSL earlier this month. This capital injection is expected to be completed by the end of the calendar year and will be crucial for PPSL, which generated Rs 2,580 crore in revenue in FY2024, nearly half of Paytm's standalone sales. The investment will not alter ownership structures as PPSL remains entirely owned by One97 Communications.
