Paytm Wallet Gets RBI’s In-Principle Approval, Audit Due by May 2027.

The Reserve Bank of India (RBI) has granted in-principle approval to Paytm Payments Services Ltd (PPSL), a wholly owned subsidiary of One 97 Communications, to issue and operate prepaid payment instruments (PPIs), including digital wallets, in India.

The approval, dated November 13, 2026, comes 1,017 days after the RBI imposed restrictions on Paytm Payments Bank’s wallet operations in January 2024.

However, the approval does not allow PPSL to immediately launch wallet services. The company must complete the required regulatory procedures and obtain final authorisation from the central bank.

According to Paytm’s official stock exchange filing, PPSL applied for the wallet licence on December 31, 2025, and received in-principle approval after 317 days.

What the RBI’s Approval Means for Paytm

The RBI’s Department of Payment and Settlement Systems granted the approval under the Payment and Settlement Systems Act, 2007.

The authorisation allows PPSL to establish a payment system for prepaid payment instruments, which enable users to load money in advance and use it for transactions.

The company must comply with the RBI’s Master Directions on Prepaid Payment Instruments, dated August 27, 2021, along with subsequent regulatory updates.

Paytm originally introduced its digital wallet in 2014 and transferred the service to Paytm Payments Bank in 2017.

On January 31, 2024, the RBI barred Paytm Payments Bank from accepting fresh deposits and wallet top-ups. The restrictions took effect on March 15, 2024.

The regulator subsequently cancelled Paytm Payments Bank’s banking licence on April 24, 2026, under Section 22(4) of the Banking Regulation Act, 1949.

Following the cancellation, the Delhi High Court issued winding-up orders on July 8 and July 22, 2026.

The court appointed Girikumar M Nair, a former chief general manager at State Bank of India, as the official liquidator of Paytm Payments Bank.

These developments were confirmed in an official RBI press release.

Unlike the previous wallet service, the proposed new wallet will operate through PPSL, a separate subsidiary of One 97 Communications.

Vijay Shekhar Sharma, founder and chief executive of One 97 Communications, had also made a commitment regarding the wallet business nine months earlier.

Paytm Must Complete Cybersecurity Audits Within Six Months

Under the conditions specified by the RBI, PPSL must conduct a system audit, including a cybersecurity audit, before receiving final authorisation.

The audit must be carried out by a CERT-In empanelled auditor, a Certified Information Systems Auditor (CISA) registered with the Information Systems Audit and Control Association (ISACA), or a professional holding a Diploma in Information System Audit (DISA) qualification from the Institute of Chartered Accountants of India (ICAI).

The audit must comply with the RBI’s Master Directions on Cyber Resilience and Digital Payment Security Controls for non-bank Payment System Operators, issued on November 5, 2026.

PPSL must also comply with the RBI’s payment system data storage requirements dated April 6, 2018.

The company has six months from November 13, 2026, to submit its system audit report, setting a deadline of May 13, 2027.

If PPSL fails to submit the report within this period, its in-principle authorisation will automatically lapse, and the RBI will not consider granting final authorisation under the existing approval.

The company must also follow the RBI’s requirements regarding changes in ownership, shareholding or control.

Paytm’s Previous Payment Aggregator Approvals

PPSL has previously completed a similar regulatory process for its payment aggregator operations.

The RBI granted the company in-principle approval to operate as an online payment aggregator on August 12, 2025.

PPSL received its final online payment aggregator authorisation on November 26, 2025, approximately 106 days later.

The company subsequently obtained approval for offline and cross-border payment aggregator operations on December 17, 2025.

PPSL now holds authorisations for online, offline and cross-border payment aggregation.

Based on its earlier approval timeline, if PPSL takes the full six months to complete the required audits and the RBI takes another 106 days to issue final authorisation, the wallet licence could be granted towards the end of August 2027.

However, the timeline remains an estimate based on the earlier approval process. Paytm has not announced an official date for the return of its wallet services.

Paytm Reports Rs 2,648 Crore Revenue in Q2 FY27

The RBI approval comes as Paytm reports growth in its financial performance and customer transactions.

The company recorded 8.5 crore monthly transacting users during the September quarter, an increase of one crore users compared with the previous year.

A new wallet would provide an additional payment option for Paytm’s customer base alongside UPI, which currently carries no merchant transaction fee.

According to Paytm’s official Q2 FY27 financial results, revenue from operations increased 28% year-on-year to Rs 2,648 crore, compared with Rs 2,061 crore in the corresponding quarter of the previous financial year.

Net profit rose to Rs 225 crore from Rs 21 crore a year earlier.

However, the increase in reported profit was partly influenced by exceptional items recorded during the previous year.

Excluding one-off items, profit increased 9%, from Rs 211 crore to Rs 229 crore. The larger reported increase was primarily attributable to an exceptional charge of Rs 190 crore in the previous financial year.

Paytm Shares Hit Record High Following RBI Approval

Shares of One 97 Communications reached a record high of Rs 1,958.80 on the BSE on Friday, November 13, 2026, gaining 1.85% during the trading session.

The stock closed at Rs 1,945.

Paytm shares were trading at approximately 6.3 times their May 2024 low of Rs 310.

Despite the recovery, the stock remained around 9% below its November 2021 IPO issue price of Rs 2,150.

The latest RBI approval brings Paytm closer to restarting its digital wallet business through PPSL. However, the company must complete the mandatory audits and obtain final regulatory authorisation before issuing prepaid wallets to customers.

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Frequently Asked Questions (FAQs)

1. Has RBI approved Paytm’s digital wallet?

The RBI granted in-principle approval to Paytm Payments Services Ltd on November 13, 2026. Final authorisation is still required before wallet services can begin.

2. When will Paytm relaunch its wallet services?

Paytm has not announced an official relaunch date. PPSL must complete regulatory audits and obtain final approval from the RBI.

3. What is the deadline for Paytm’s wallet licence audits?

PPSL must submit its system and cybersecurity audit report within six months of November 13, 2026, making May 13, 2027, the deadline.

4. Why was Paytm’s previous wallet restricted?

The RBI restricted Paytm Payments Bank from accepting fresh deposits and wallet top-ups in January 2024. The restrictions took effect on March 15, 2024.

5. What was Paytm’s net profit in Q2 FY27?

Paytm reported a net profit of Rs 225 crore in Q2 FY27, compared with Rs 21 crore in the corresponding quarter of the previous financial year.