Paytm Payments Services Gains RBI Approval for Online Payments

Paytm Payments Services has received the Reserve Bank of India's approval to function as an online payment aggregator. The announcement was made in a filing on Tuesday by One97 Communications, Paytm's parent firm and brand owner.

This approval effectively removes previous restrictions placed on Paytm Payments Services Limited from onboarding new merchants, a limitation imposed on November 25, 2022. The 'in-principle' authorization from the Reserve Bank of India, dated August 12, 2025, allows the company to operate under the Payment and Settlement Systems Act of 2007.

The permit was applied for in March 2020 but faced delays due to compliance issues related to Foreign Direct Investments. The granting of the permit comes shortly after China's Alibaba group exited One97 Communications by selling its entire stake.

(With inputs from agencies.)