Paytm Gets Preliminary RBI Approval for Wallet Licence; Shares Hit Record High of ₹1,960

Paytm has received preliminary approval from the Reserve Bank of India (RBI) to issue prepaid payment instruments (PPIs), including digital wallets, through its wholly owned subsidiary, Paytm Payments Services Limited (PPSL). The regulatory development marks an important step towards reviving Paytm’s wallet business, which was disrupted following regulatory action against Paytm Payments Bank. Following the announcement on November 13, 2026, shares of One 97 Communications, Paytm’s parent company, climbed to a record intraday high of ₹1,960.

The approval allows PPSL to move towards establishing and operating a payment system for prepaid instruments, subject to compliance with RBI regulations and receipt of final authorisation. Paytm clarified that it cannot immediately restart wallet services based solely on the preliminary approval. The company must first complete the required regulatory procedures and obtain the RBI’s final Certificate of Authorisation (CoA).

RBI Grants Preliminary Approval for Paytm Wallet Licence

Paytm announced that its payments services subsidiary had received in-principle authorisation from the RBI to issue and operate prepaid payment instruments in India.

The approval was communicated through a letter dated November 13, 2026, issued by the RBI’s Department of Payment and Settlement Systems.

The authorisation falls under the Payment and Settlement Systems Act, 2007, and is subject to compliance with the RBI’s Master Directions on Prepaid Payment Instruments dated August 27, 2021, as amended.

Prepaid payment instruments allow customers to store money digitally and use the balance for permitted transactions.

These include digital wallets, which can be used for online purchases, merchant payments and other eligible financial transactions.

For Paytm, the approval represents progress towards restoring a product that was once central to its digital payments business.

However, the company will need to receive final regulatory authorisation before offering wallet services to customers.

Paytm Cannot Restart Wallet Services Immediately

Although the RBI has granted preliminary approval, Paytm’s subsidiary cannot begin issuing prepaid payment instruments immediately.

The company must complete the remaining regulatory requirements and obtain the final Certificate of Authorisation from the central bank.

According to the approval conditions reported by Business Standard, PPSL must also undertake a system audit, including a cybersecurity audit, through an eligible independent auditor.

The audit must cover the applicable requirements under the RBI’s Master Directions on Cyber Resilience and Digital Payment Security Controls for non-bank Payment System Operators, issued on November 5, 2026.

Only after completing the required procedures and securing final approval will PPSL be able to offer prepaid payment instruments, including digital wallets.

This distinction is important because the current approval is an intermediate regulatory milestone rather than a full operating licence.

Paytm Shares Hit Record High of ₹1,960

The RBI development triggered a positive reaction in the stock market.

Shares of One 97 Communications climbed to an intraday high of ₹1,960 on November 13, 2026.

The stock crossed its original listing price of ₹1,950 for the first time since its November 2021 market debut.

However, Paytm shares later pared most of their gains and closed at ₹1,934, up approximately 0.47% for the trading session.

The stock’s movement reflected investor interest in the possibility of Paytm restoring its wallet business.

The preliminary approval also comes after the company reported improving financial performance in its recent quarterly results.

Investors are closely monitoring Paytm’s ability to expand its regulated financial services operations following several years of regulatory challenges.

The RBI approval could help strengthen expectations around the company’s long-term payments strategy, although the eventual commercial impact will depend on final authorisation and the successful relaunch of wallet services.

Why Did Paytm Lose Its Wallet Business?

Paytm’s wallet business faced major disruption following regulatory action against Paytm Payments Bank.

In January 2024, the RBI directed Paytm Payments Bank to stop accepting fresh deposits and wallet top-ups after February 29, 2024. The deadline was subsequently extended to March 15, 2024.

The restrictions followed persistent regulatory non-compliance and supervisory concerns identified by the central bank.

The action significantly affected Paytm’s wallet operations because the company’s wallet services were linked to Paytm Payments Bank.

Customers could no longer add fresh money to their wallets through the restricted banking entity.

In April 2026, the RBI cancelled Paytm Payments Bank’s banking licence, effective from the close of business on April 24, 2026.

The central bank also initiated the process of winding up the bank.

The cancellation removed the possibility of continuing the wallet business through the payments bank, creating the need for Paytm to pursue a separate regulatory authorisation.

Paytm Applied for a Fresh Wallet Licence in 2026

Following the cancellation of Paytm Payments Bank’s licence, Paytm began working towards rebuilding its wallet business under a different corporate entity.

Its wholly owned subsidiary, Paytm Payments Services Limited, applied to the RBI for a fresh prepaid payment instrument licence in July 2026.

The application was part of the company’s broader effort to restore its digital wallet offering independently of the former payments bank.

PPSL already operates in the payments aggregation business, providing online merchant payment services under RBI authorisation.

The latest in-principle approval marks progress in the company’s application to expand into prepaid payment instruments.

Once final authorisation is received, Paytm could offer wallets alongside its existing digital payment services.

This would provide the company with another payment option for customers who prefer maintaining a prepaid balance rather than making every transaction directly through a bank account.

How the New Wallet Licence Could Benefit Paytm

A successful wallet relaunch could strengthen Paytm’s consumer payments ecosystem and expand its range of financial services.

The company has historically built a large customer base through its digital wallet, QR-code payments and merchant acceptance network.

Restoring wallet services could provide several business opportunities.

1. More Payment Options for Customers

Paytm could offer customers prepaid wallets alongside UPI payments, allowing users to choose between different digital payment methods.

2. Higher Customer Engagement

Wallet services could encourage customers to use the Paytm application more frequently for everyday transactions.

3. Stronger Merchant Ecosystem

A renewed wallet business could complement Paytm’s merchant payment infrastructure and provide additional payment options at retail outlets.

4. Diversification of Payments Revenue

Expanding its regulated payment services could help Paytm diversify its business beyond its existing merchant payment and UPI-related activities.

However, the commercial benefits will depend on customer adoption, transaction volumes, regulatory conditions and the company’s ability to compete with other digital payment platforms.

Paytm’s Competition in India’s Digital Payments Market

Paytm operates in an increasingly competitive digital payments industry.

Its competitors include PhonePe, Google Pay, Amazon Pay and other payment service providers.

UPI has become the dominant payment method for many everyday digital transactions in India, reducing the importance of standalone prepaid wallets compared with their earlier role in the market.

However, wallets continue to serve specific customer requirements, including prepaid spending, merchant payments and selected digital services.

Paytm’s potential return to the wallet segment could help it strengthen its position in the broader payments ecosystem.

The company will nevertheless need to convince customers to use its wallet services alongside payment options already available through competing applications.

The Bigger Picture

Paytm’s preliminary RBI approval highlights the importance of regulatory authorisation in India’s fintech industry.

The company spent more than two years dealing with restrictions affecting its payments bank operations before receiving an opportunity to pursue a fresh wallet licence through a separate subsidiary.

The latest development does not immediately restore the company’s previous wallet business, but it represents progress towards rebuilding that part of its payments ecosystem.

It also demonstrates how fintech companies may restructure their operations to separate regulated activities and comply with evolving regulatory requirements.

For India’s digital payments market, the development could introduce another competitor into the prepaid wallet segment if Paytm receives final authorisation and successfully relaunches the service.

Looking Ahead

Paytm’s immediate priority will be completing the system and cybersecurity audits and meeting the RBI’s remaining regulatory requirements. The company must obtain the final Certificate of Authorisation before it can begin issuing prepaid payment instruments and restarting wallet services. The timing of the final approval and the commercial relaunch has not yet been announced.

For investors, the key developments to watch will be the final RBI clearance, the return of wallet functionality and the impact on Paytm’s customer engagement and financial performance. The preliminary approval provides a new opportunity for the company to rebuild its wallet business, but its long-term success will depend on regulatory compliance, customer adoption and competition in India’s digital payments market.