Paytm Gets Preliminary RBI Approval for Wallet Licence; Shares Hit Record High
India’s Paytm has received preliminary approval from the Reserve Bank of India (RBI) for its payments services unit to issue prepaid payment instruments, including digital wallets. The development sent the company’s shares to a record high on Friday. The approval will allow Paytm to operate its wallet business independently of Paytm Payments Bank, which previously housed the service. However, the company will need final RBI authorisation before offering prepaid payment products to customers.
The approval follows the winding up of Paytm Payments Bank after the central bank cancelled its banking licence in April 2026. Regulatory restrictions imposed in 2022 and tightened in 2024 had significantly affected the company’s wallet operations. According to analysts, the new approval could create additional revenue opportunities, including the introduction of prepaid cards, while reducing regulatory challenges for the company. However, the financial benefits are expected to become more visible from the financial year 2028.
Following the announcement, Paytm shares climbed as much as 1.8% to Rs 1,960 before closing 0.8% higher. The stock has gained nearly 50% so far this year, supported by growth across its businesses. Paytm launched its digital wallet in 2014 and went on to become one of India’s leading wallet providers. The latest RBI approval marks an important development in its efforts to rebuild and expand its digital payments operations.
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