After losing its payments bank licence, One97 Communications is now moving ahead to rebuild Paytm’s digital payments business. The company has applied for a Prepaid Payment Instrument (PPI) licence from the Reserve Bank of India (RBI), which, if approved, will allow it to restart wallet services under its own entity.
Why has Paytm applied for a PPI licence?
A PPI licence permits companies to issue prepaid payment tools like digital wallets, where users can add money and use it for payments, shopping, and transfers within RBI rules.
Paytm’s wallet operations were largely paused after regulatory action against Paytm Payments Bank. While the company continued UPI services through partner banks, it could no longer run its wallet business via its banking arm.
By applying for a new PPI licence, Paytm is aiming to regain full control over its wallet services instead of depending on its now inactive payments bank.
What is a PPI licence?
A PPI licence allows authorised companies to offer digital wallets and other prepaid payment solutions. With this licence, users can usually: