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Synopsis: Paytm has received in-principle approval from the Reserve Bank of India to issue prepaid payment instruments via its subsidiary. Following the announcement, shares of the fintech firm hit a record high of Rs 1,960.
One97 Communications' subsidiary Paytm Payments Services has obtained preliminary approval from the Reserve Bank of India on 13 November 2026 to offer prepaid payment instruments, sending Paytm shares to an all-time high of Rs 1,960.
What did the RBI approve for Paytm Payments Services?
According to a regulatory filing, Paytm Payments Services has received preliminary authorisation from the central bank for prepaid payment instruments (PPIs), which includes digital wallet services.
The wholly owned subsidiary will be permitted to roll out these prepaid products to consumers after securing the final authorisation from the RBI.
Why is this regulatory step significant for the company?
The in-principle nod comes more than two years after the regulator instructed Paytm Payments Bank to stop accepting new deposits and wallet top-ups. That directive stemmed from persistent supervisory concerns and regulatory non-compliance, which effectively shut down its core wallet features.
Additionally, the RBI revoked the banking licence of Paytm Payments Bank earlier this year. The latest clearance enables Paytm's subsidiary to take steps toward relaunching its digital wallet operations once final clearance is granted.
How did the stock market respond to the announcement?
Investors reacted positively to the regulatory update on Friday.
The company's stock climbed to a peak of Rs 1,960 during trading sessions, marking a new record high for the scrip.
What it means for you
For Paytm investors, the preliminary approval signals progress in resolving past regulatory bottlenecks following the cancellation of Paytm Payments Bank's licence. If final approval is granted, consumers and merchants may eventually see the return of Paytm's digital wallet offering under its payment services subsidiary.
Frequently asked questions
Which entity received the preliminary approval from the RBI?
Paytm Payments Services, a wholly owned subsidiary of Paytm, received the preliminary approval.
Can Paytm immediately launch digital wallets for customers?
No, the subsidiary can offer wallets and other prepaid payment instruments only after receiving final authorisation from the RBI.
What record price did Paytm shares hit after the news?
Paytm shares hit a record high of Rs 1,960 following the regulatory announcement.
Read also: Paytm Shares Slip Nearly 2% Amid Block Deal Buzz
Sources: BusinessLine Money & Banking; Economic Times BFSI. Written by the ICC BizNews Desk on 15 November 2026. Read our editorial policy or report a correction. This article is for information only and is not investment advice.
