Paytm gets RBI nod for digital wallet business: When can users add money and make payments through Paytm Wallet again?
Paytm has moved a step closer to reviving its digital wallet business after the Reserve Bank of India (RBI) granted preliminary approval to its payments services subsidiary to issue prepaid payment instruments (PPIs), including digital wallets. The development could help the fintech company rebuild a key part of its consumer payments business following regulatory action against Paytm Payments Bank earlier this year.
According to a Reuters report published on November 13, Paytm's payment services unit received preliminary authorisation from the central bank to operate a payment system for issuing prepaid payment instruments. The development also pushed shares of One 97 Communications, Paytm's parent company, to a record high of ₹1,960.
The company separately disclosed the regulatory development in a stock exchange filing on November 13. Its wholly owned subsidiary, Paytm Payments Services Ltd (PPSL), received an RBI letter granting in-principle authorisation under the Payment and Settlement Systems Act, 2007.
However, the approval does not mean customers can immediately start loading money into Paytm Wallet. PPSL must fulfil the RBI's prescribed conditions and obtain final authorisation before commencing wallet operations.
The in-principle authorisation comes with compliance requirements involving the company's technology and cybersecurity infrastructure.
According to the company's exchange disclosure, PPSL has been advised to undertake a system audit, including a cybersecurity audit, through an eligible auditor. It must submit the audit report to the RBI within six months from November 13, 2026.
The audit must be conducted by an auditor empanelled with the Indian Computer Emergency Response Team (CERT-In), a Certified Information Systems Auditor (CISA) registered with ISACA, or a holder of the Diploma in Information System Audit (DISA) qualification from the Institute of Chartered Accountants of India.
If PPSL fails to submit the report within the stipulated six-month period, the in-principle authorisation will automatically lapse. The RBI will not consider granting final authorisation thereafter.
PPSL can begin issuing PPIs only after receiving final authorisation or a Certificate of Authorisation from the RBI.
The approval is significant because Paytm's wallet operations were affected by regulatory action against Paytm Payments Bank, which had been closely associated with its earlier wallet ecosystem.
On April 24, 2026, the RBI cancelled Paytm Payments Bank's banking licence, prohibiting it from conducting banking business with immediate effect. The latest approval provides a separate regulatory route for Paytm to rebuild its wallet business through PPSL, rather than relying on its former banking subsidiary.
The company had previously applied for a fresh PPI authorisation to revive its wallet offering. The latest development marks an important regulatory milestone in that process.
It is important to distinguish this approval from PPSL's earlier authorisation as an online payment aggregator in August 2025. A payment aggregator facilitates payment processing for merchants, while a PPI authorisation allows an entity to issue prepaid instruments such as digital wallets.
Prepaid payment instruments allow users to store money digitally and spend it on permitted transactions without initiating a fresh bank transfer for every purchase.
Under the RBI's PPI framework, there are two broad categories of instruments: small PPIs and full-KYC PPIs.
Small PPIs can be issued after obtaining minimum customer details. They can be used to purchase goods and services but do not permit fund transfers or cash withdrawals.
Full-KYC PPIs require customers to complete the prescribed Know Your Customer (KYC) process. They allow purchases, fund transfers and cash withdrawals, subject to RBI-prescribed conditions and limits.
The RBI also permits PPIs to be issued as digital wallets and cards. Full-KYC PPIs can be linked to UPI, allowing customers to make payments using their wallet balance, subject to applicable rules.
If Paytm receives final authorisation, it could offer customers a digital wallet again. However, the company has not announced the proposed wallet's launch date, transaction limits or the precise features that will be available.
Customers will have to wait for the RBI's final authorisation before expecting the wallet service to resume.
The six-month deadline for submitting the system and cybersecurity audit report is an important milestone. However, submitting the report does not automatically guarantee final approval. PPSL must satisfy the RBI's regulatory requirements and receive the necessary authorisation.
Kirti jha
Kirti Jha is a Senior Content Producer at Mint, where she writes on mutual funds, taxation, personal finance and macroeconomic developments. Her reporting focuses on helping readers understand complex financial developments through data-driven, research-backed stories that explain how policy changes, market trends and regulatory decisions affect investors and households. <br><br> Before joining Mint, Kirti worked at ET Money, where she specialised in mutual fund research and investment analysis. She tracked portfolio disclosures, fund manager strategies, sectoral allocation shifts and investment trends, distilling large datasets into investor-focused insights. Her work combined quantitative analysis with consumer-centric storytelling, enabling readers to better understand fund positioning, portfolio changes and long-term investment opportunities.<br><br> Kirti holds a Bachelor's degree in Economics from Indraprastha College for Women, University of Delhi, and a Master's in Finance from the Jindal School of Banking & Finance at O.P. Jindal Global University. Her academic training emphasised analytical thinking, quantitative research and financial decision-making, providing a strong foundation in understanding capital markets, financial systems and economic policy. With a combined experience in investment research and financial journalism, she is committed to producing accurate, accessible and insightful journalism that empowers readers to make well-informed financial decisions.
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