In-principle authorisation granted by the Reserve Bank of India to Paytm Payments Services Limited, for Prepaid Payment Instruments (PPI)
FinTech BizNews Service
Mumbai, 13 November, 2026:Reserve Bank of India (RBI) has granted an 'in-principle' authorisation to Paytm Payments Services Limited (PPSL) to set up and operate payment system for Prepaid Payment Instruments (PPIs) in India, subject to adherence to Master Directions on Prepaid Payment Instruments (PPIs) dated August 27, 2021 (as updated from time to time).
PPSL is advised to undertake a System Audit, including Cyber Security audit, to be conducted by a CERT-In empanelled auditor or a Certified Information Systems Auditor (CISA) registered with Information System Audit and Control Association (ISACA) or by a holder of a Diploma in Information System Audit (DISA) qualification of the Institute of Chartered Accountants of India (ICAI). The scope and coverage of the Audit to be undertaken is contained in the Master Directions on Cyber Resilience and Digital Payment Security Controls for non-bank Payment System Operators dated November 05, 2026.
Para 37 of the aforesaid circular is regarding conflict of interest for the auditor and compliance with the RBI circular 'Storage of Payment System Data' dated April 6, 2018.
The System Audit Report should be submitted to RBI within six months from the date of this letter, failing which the in-principle authorisation granted hereby shall lapse automatically and grant of final authorisation shall not be considered thereafter.
PPSL is advised to note that in case of change of shareholding/ ownership of the company, the company should refer to and be guided by "Requirement for obtaining prior approval in case of takeover / acquisition of control of non-bank PSOs and sale / transfer of payment system activity of non-bank PSO" dated July 04, 2022.
It may also be noted that PPSL can commence issuance of Prepaid Payment Instruments only after grant of Final Authorisation / Certificate of Authorisation.
