Paytm Secures Final RBI Approval as Payment Aggregator
Paytm Payments Services Limited (PPSL) has received the final Certificate of Authorization from the Reserve Bank of India to operate as a Payment Aggregator, a major regulatory milestone that unlocks significant business growth potential.
Key Takeaways
- Paytm can now onboard new merchants and process online payments
- The approval resolves a long-standing regulatory hurdle dating back to 2020
- Company gains parity with major fintech competitors like Razorpay and PayU
- Authorization expected to positively impact One 97 Communications’ consolidated financials
Merchant Onboarding and Payment Processing Enabled
With this final approval granted on November 26, Paytm Payments Services can now actively onboard new merchants and facilitate online payment collection and settlement. Previously, the company was restricted from adding new merchants and could only service its existing clientele until receiving the necessary clearances.
Overcoming Regulatory Hurdles
This development marks the culmination of a lengthy regulatory process that began in March 2020. The RBI had returned Paytm’s initial application in 2022 due to non-compliance with foreign direct investment norms. The issue was resolved in August 2024 when the company secured necessary clearances from the Union Finance Ministry.
Competitive Parity Achieved
The Payment Aggregator certification brings Paytm on par with major fintech competitors including Cashfree, Pine Labs, PayU, and Razorpay, who had already obtained authorization to operate as online, offline, and cross-border payment providers.
Financial Impact and Business Growth
The final clearance comes just over three months after the RBI granted in-principle approval on August 12. According to exchange filings, the authorization will support business growth and be reflected in the consolidated financials of parent company One 97 Communications.
The company clarified that the authorization faces no suspension, withdrawal, or cancellation, and there is no monetary or operational impact requiring corrective action.
