Paytm seeks RBI approval for PPI license to relaunch digital wallet

Paytm's parent One97 Communications, through its wholly‑owned subsidiary Paytm Payments Services Ltd, has applied to the Reserve Bank of India for a Prepaid Payment Instrument (PPI) licence. The move aims to restore the company's own digital wallet service, which was halted after RBI cancelled the Paytm Payments Bank licence in April 2026 over regulatory violations.

If the PPI licence is granted, Paytm will be able to issue and run its wallet independently of other banks, giving users an additional payment option alongside UPI. The application was disclosed in Paytm's June‑quarter investor presentation, where the firm highlighted expected benefits for its broader payments ecosystem and revenue growth. RBI is currently reviewing the request.