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Startups·1 min read

Paytm wallet revival: RBI gives in-principle nod to PPSL

Paytm's new subsidiary PPSL has cleared the first hurdle to issue wallets again, but the RBI wants a system audit report within six months.

A smartphone showing a digital wallet payment screen next to Indian rupee notes.
Image: YourStory
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The Paytm wallet may be coming back. The Reserve Bank of India (RBI) has given an in-principle approval to Paytm Payments Services Limited (PPSL), a Paytm subsidiary, to issue prepaid payment instruments such as wallets.

"In-principle" is the key phrase. It is not a final licence. It is the regulator saying that the company can move ahead, as long as it meets a condition: PPSL must submit a system audit report within six months.

What does the RBI approval for Paytm mean?

Prepaid instruments are the stored-money products most people know as wallets. You load money in, then spend it on payments. Under this approval, PPSL is the entity lined up to run that business for Paytm again, which is why the news is being read as a path to reviving the wallet.

The source material does not say when wallets could go live, and it does not say what products PPSL will launch first. Those details are not yet clear.

What happens next?

The next step is the audit. A system audit looks at the technology and processes behind a payments business, and the RBI wants the report within six months. Whether the approval turns into a full authorisation will depend on that submission.

For Paytm users, nothing changes today. For the company, it is a concrete sign that its wallet business has a route back, with a new subsidiary carrying it.

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Tags:paytmrbipaytm walletppslprepaid payment instrumentsfintech

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