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RBI Authorizes Paytm Unit for Offline and Cross‑Border Payment Aggregation

The decision caps a multi‑year licensing process, imposing a six‑month cross‑border launch deadline with six‑hour incident reporting.

Overview

  • Paytm Payments Services Limited received RBI approval on December 17 to operate as a payment aggregator for physical payments and both inward and outward cross‑border transactions.
  • With this clearance, PPSL now holds aggregator authorisations across online, offline and cross‑border segments, enabling end‑to‑end services for merchants.
  • The new approvals follow an online payment aggregator licence granted on November 26 under the Payment and Settlement Systems Act, 2007.
  • RBI conditions require PPSL to start cross‑border services within six months and to report major incidents such as cyberattacks or outages within six hours, with penalties possible for lapses.
  • Paytm recently strengthened PPSL with a Rs 2,250 crore rights‑issue infusion and transferred its offline merchant payments business (book value Rs 960 crore for FY25) into the subsidiary.