The Reserve Bank of India has authorised Paytm Payments Services Limited to operate as a payment aggregator for offline and cross-border transactions
Mumbai: Paytm Payments Services Limited (PPSL), a wholly owned subsidiary of One97 Communications Limited, has received approval from the Reserve Bank of India (RBI) to operate as a Payment Aggregator for physical (offline) payments and cross-border transactions, including both inward and outward flows.
The authorisation, granted on December 17, 2025, comes in addition to the online Payment Aggregator licence that PPSL received from the RBI on November 26, 2025, under the Payment and Settlement Systems Act, 2007. With this clearance, PPSL now holds regulatory approval across online, offline, and cross-border payment aggregation use cases.
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In a regulatory filing, Paytm said the approval enables PPSL to offer end-to-end payment aggregation services to merchants across multiple transaction formats, strengthening its position in India’s payments ecosystem.
PPSL had first applied for a payment aggregator licence in November 2020 under the RBI’s Guidelines on Regulation of Payment Aggregators and Payment Gateways. However, the central bank rejected the application in November 2022, directing the company to reapply in compliance with Press Note 3 of the foreign direct investment (FDI) rules.
To address this, PPSL submitted a fresh application on December 14, 2022, after seeking approval from the Government of India for past downstream investment from its parent company, One97 Communications Limited, in line with Press Note 3 requirements.
The latest RBI approval marks a significant regulatory milestone for Paytm’s payments arm, particularly after prolonged scrutiny over compliance and ownership structures. It also allows PPSL to support merchants with in-store digital payments as well as international transaction capabilities, areas seen as key growth segments for India’s fintech industry.
The development is expected to enhance Paytm’s merchant offerings while reinforcing regulatory certainty for its payments infrastructure operations.
Published: 18 Dec 2025, 01:38 pm IST
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