Paytm Wallet Wins RBI In-Principle Nod, Audit in 6 Months

Paytm moved closer to reviving its wallet after the RBI gave its Noida-based payments arm a first-stage approval on November 13, 2026 to issue prepaid wallets.

The arm is Paytm Payments Services Ltd, or PPSL. In an exchange filing that day, Paytm disclosed the step. It called the approval an in-principle nod, cleared under the Payment and Settlement Systems Act, 2007.

It is not a green light to launch. PPSL cannot issue a single wallet until the RBI grants a final Certificate of Authorisation.

First, PPSL must pass a system audit, including a cybersecurity check, through an approved auditor. The report is due to the RBI within six months. Miss that deadline and the approval lapses on its own.

PPSL must also get RBI approval before any change in its shareholding or ownership. That follows the RBI’s July 2022 rules for non-bank payment firms.

The Road Back for the Paytm Wallet

The wallet first went live in 2014, run by Paytm. It moved the business to Paytm Payments Bank in 2017.

That link became the problem. In January 2024, the RBI barred Paytm Payments Bank from taking fresh deposits and wallet top-ups. The curbs took effect on March 15, 2024, and froze the wallet.

After the ban, Paytm looked for a route that did not need the bank. PPSL had flagged this licence bid in its Q1 FY27 earnings release, then applied on December 31, 2025.

Investors liked the news. The stock hit a 52-week high of Rs 1,958.80 on the BSE before closing 1.1% higher at Rs 1,945. It is still below the Rs 2,150 price from its 2021 IPO.

The nod caps a stronger run for Paytm. Weeks earlier, it posted a Q2 net profit of Rs 225 crore, against Rs 21 crore a year before.

The wallet earns little on its own. Its value is pulling users in and cross-selling loans, Postpaid credit and investing, where Paytm makes its money.

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