1:00 PM IST – Fintech major Paytm just crossed one of the biggest regulatory hurdles in its history. Its fully-owned arm Paytm Payments Services Limited (PPSL) has now secured the final green signal from the Reserve Bank of India. RBI has issued the Certificate of Authorisation, officially allowing PPSL to operate as a regulated Payment Aggregator under India’s Payment and Settlement Systems Act, 2007.
This approval was formally confirmed through a stock exchange filing made to BSE India PDF on November 26, 2025, signed by Company Secretary Sunil Kumar Bansal. The filing also attaches a copy of the CoA issued by the RBI’s Department of Payment and Settlement Systems. Paytm also acknowledged the milestone publicly in a tweet from its official handle, sharing the same regulatory filing link.
Our wholly-owned subsidiary Paytm Payments Services Limited has received Certificate of Authorisation from RBI to operate as a Payment Aggregator under the Payment and Settlement Systems Act, 2007. Read here: Read here: https://t.co/54EmlotAxl
— Paytm (@Paytm) November 26, 2025
This marks the end of a long freeze that had blocked PPSL from onboarding new merchants for nearly three years.
Quick Timeline — From Application to Final Approval
| Year / Event | What happened |
|---|---|
| 2020 | PPSL applies for a Payment Aggregator licence |
| Nov 2022 | RBI rejects application over compliance and FDI-related concerns; Paytm is barred from onboarding new merchants |
| 2022–2024 | Services to existing merchants continue, but no new business is allowed — major slowdown in payments revenue growth |
| Aug 12, 2025 | RBI gives PPSL “in-principle” approval after compliance fixes |
| Nov 26, 2025 | Final CoA issued — freeze officially ends |
So yes — almost 36 months of regulatory limbo finally comes to an end.
Why Was Paytm Stuck?
The issue wasn’t product or performance — it was mainly compliance:
- Foreign investment and shareholding structure need to be aligned with updated RBI guidelines
- RBI sought stronger governance and monitoring for a business as critical as payments
- Merchant onboarding was paused until every check was clean and verified
This caused a major dent in merchant acquisition. While the fintech industry kept expanding, Paytm had to simply hold its position and wait.
What Will Change Now?
With the final licence in hand:
- PPSL can onboard new merchants again, for example, websites, small shops, online businesses, startups, and apps.
- Paytm’s payment gateway business reactivates fully
- Growth in this line of business will now reflect clearly in One97 Communications’ consolidated financials
- Merchant confidence and brand trust get a boost with full regulatory clarity
Paytm can now legally process cards, UPI, net-banking and offer complete settlement services, like it originally built its dominance on.
Let’s give a simple example –
You are buying shoes from an online store such as BATA or ordering pizza from Zomato. At checkout, you see options like:
- Paytm UPI
- Paytm Wallet
- Debit/Credit Card (via Paytm checkout page)
Click → Pay → Done.
No need to trust the website with card details — Paytm now officially RBI-approved handles the secure payment part.
Competition: Game Back On
During Paytm’s freeze, competitors gained ground — especially Razorpay, Cashfree, and other payment aggregators. They were free to sign up merchants while Paytm stood still.
Now?
Paytm is coming back into the race fully charged:
- Massive user base advantage
- Strong merchant relationships in Tier-2 and Tier-3 cities
- Integrated ecosystem — QR + UPI + Wallet + Soundbox
Competition will heat up again — and this time Paytm has something to prove.
Quick Note for Readers
- This licence is only for Paytm Payments Services — not Paytm Payments Bank.
- So banking features like new wallets, deposits, and FASTag top-ups are still not back.
