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PPSL Receives RBI Approval to Operate as Online Payment Aggregator.

Banking & Finance | Dated: 15 Aug 2025

In August 2025, Paytm Payments Services Limited (PPSL), a wholly-owned subsidiary of One 97 Communications, received ‘In-Principle’ approval from the Reserve Bank of India (RBI) to operate as an Online Payment Aggregator (PA) under the Payment and Settlement Systems Act (PSS Act), 2007. This approval enables PPSL to resume operations in compliance with regulatory guidelines.

🎯 Key Highlights:

  • - The RBI’s approval requires PPSL to adhere strictly to the Guidelines on Regulation of Payment Aggregators and Payment Gateways, issued on March 17, 2020, and updated on March 31, 2021. This includes compliance with operational standards, security requirements, and customer protection measures.

💡 Other Important Facts:

  • (i) With this clearance, PPSL can restart onboarding new merchants — a process that had been halted for over a year. This move is expected to strengthen Paytm’s position in the digital payments sector by enabling smoother and faster integration for merchants.
  • (ii) The RBI has mandated that PPSL complete a thorough system audit, including a cybersecurity review, within six months. The audit results must be submitted to the RBI, failing which the in-principle approval could be withdrawn. PPSL must also seek prior RBI consent for any changes in its shareholding or ownership structure.

📚 Test Your Knowledge:

Recently, which authority granted ‘In-Principle’ approval to Paytm Payments Services Limited (PPSL) to operate as an Online Payment Aggregator?

Correct Answer: RBI

🚀 Quick Recap:

About RBI

  • Governor : Sanjay Malhotra
  • Headquarter : Mumbai