Paytm Payments Services gets RBI approval to operate as a payment aggregator

Paytm Payments Services Limited, the payments arm of One97 Communications, has received the final Certificate of Authorisation (COA) from the Reserve Bank of India (RBI) to operate as a payment aggregator.

The approval was granted on November 26, 2025. The fintech company informed the stock exchanges that the licence allows it to offer payment aggregation services under the Payment and Settlement Systems Act, 2007.

"In exercise of the powers conferred upon the Reserve Bank of India by Section 7 of the Payment and Settlement Systems Act, 2007, Paytm Payments Services Limited is hereby granted Certificate of Authorisation to operate as a 'Payment Aggregator' in India with effect from November 26, 2025 as per the guidelines issued by Reserve Bank of India and subject to compliance with the terms and conditions given on the reverse of this Certificate," RBI said.

With this approval, the subsidiary can deploy and manage its point of sale devices and soundboxes across merchant outlets. It will also be able to support a wide range of payment instruments, including credit cards, UPI and wallets. Having a payment aggregator licence is expected to reduce processing costs for the company. These charges usually range between 0.5% and 2% depending on payment volumes.

The authorisation comes three months after the RBI granted an in-principle nod to the entity in August. It has also come soon after the Paytm board approved an investment of up to Rs 2,250 crore into the payments subsidiary through a rights issue to strengthen its net worth and support business requirements.

Paytm remained profitable in the second quarter of FY26, reporting a net profit of Rs 21 crore. Profit was sharply lower year on year because the year ago quarter included a one-time gain of Rs 1,345 crore from the sale of Paytm Insider. Operating revenue rose 24% year on year and 7% sequentially to Rs 2,061 crore in the same quarter.