One 97 Communications Limited (the Company) announced that its wholly owned subsidiary, Paytm Payments Services Limited (PPSL), has received an in-principle authorisation from the Reserve Bank of India (RBI). This authorisation, granted under the Payment and Settlement Systems Act, 2007, allows PPSL to set up and operate a payment system for the issuance and operation of Prepaid Payment Instruments (PPIs) in India. The company had previously applied for a wallet license.
In-Principle Authorisation for Prepaid Payment Instruments
One 97 Communications Limited (the Company) has disclosed that its wholly owned subsidiary, Paytm Payments Services Limited (PPSL), has been granted an in-principle authorisation by the Reserve Bank of India (RBI). This significant development, communicated via a letter dated November 13, 2026, permits PPSL to establish and operate a payment system for the issuance and operation of Prepaid Payment Instruments (PPIs) within India. The authorisation is contingent upon adherence to the RBI’s Master Directions on Prepaid Payment Instruments, dated August 27, 2021, as updated periodically.
Expansion of Financial Services
The Company had previously indicated its intention to secure a wallet license during its Q1 FY2027 earnings release. The grant of this in-principle authorisation marks a crucial step towards offering prepaid instruments, such as wallets, directly to customers. A final authorisation or Certificate of Authorisation will be required before PPSL can commence these operations. The disclosure document, including a copy of the RBI’s letter, has been made available on the Company’s investor relations website.
Operational Requirements
PPSL has been advised by the RBI to undertake a System Audit, encompassing Cyber Security, to be conducted by a CERT-In empanelled auditor or a Certified Information Systems Auditor (CISA). The scope and coverage of this audit are detailed in the Master Directions on Cyber Resilience and Digital Payment Security Controls. The System Audit Report must be submitted to the RBI within six months from the date of the letter, failing which the in-principle authorisation will automatically lapse.
Furthermore, PPSL is directed to comply with requirements concerning changes in shareholding or ownership, referencing RBI guidelines dated July 04, 2022. The company can only commence the issuance of Prepaid Payment Instruments after obtaining the final authorisation or Certificate of Authorisation. PPSL is required to acknowledge the receipt of this letter.
Source: BSE
