One 97 Communications said in a stock exchange filing on Tuesday that its wholly-owned subsidiary Paytm Payments Services Limited (PPSL), has received the RBI’s in-principle approval to operate as an online payment aggregator.

According to PTI, the RBI’s nod also lifts the restriction imposed in November 2022, that barred PPSL from onboarding new merchants. “We would like to inform you that RBI has granted ‘in-principle’ authorisation to PPSL, vide its letter dated August 12, 2025, to operate as an Online Payment Aggregator under the Payment and Settlement Systems Act, 2007,” the company stated.

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PPSL had applied for the permit in March 2020 but approval was delayed due to compliance issues linked to foreign direct investment in the company. The regulatory green light comes less than two weeks after Chinese e-commerce giant Alibaba Group fully exited OCL by selling its remaining stake.

The approval, however, comes with stringent compliance requirements. According to the central bank, the authorisation is subject to adherence to its Guidelines on Regulation of Payment Aggregators and Payment Gateways issued on March 17, 2020, along with clarifications dated March 31, 2021. The approval applies strictly to online payment aggregator activities defined under these guidelines, excluding transactions outside their scope, such as merchant “pay-out” transactions via escrow accounts.

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As part of the conditions, PPSL must conduct a comprehensive system audit through a CERT-In empanelled auditor, a Certified Information Systems Auditor (CISA) registered with ISACA or a DISA-qualified professional from the Institute of Chartered Accountants of India. The system audits should also include a cybersecurity audit, RBI said.

PPSL is required to submit the audit report within six months from the RBI’s approval letter. The central bank clarified if the company failed to adhere to the conditions, the authorisation will lapse automatically.