RBI gives Paytm unit in-principle nod for prepaid instruments
In short
Paytm Payments Services Limited got in-principle RBI approval to run prepaid payment instruments, including wallets. The approval still needs a system audit and final clearance.
The company has taken a step closer to offering wallets under RBI rules.
What the reporting says
Paytm Payments Services Limited received in-principle RBI authorisation to operate prepaid payment instruments, including wallets, pending a system audit and final approval. CNBC TV18 said the approval is for the Paytm subsidiary and that final clearance still depends on the audit process. The development could support Paytm’s payments business once the last conditions are met.
Why it matters
Paytm Payments Services Limited received in-principle RBI approval to operate prepaid payment instruments, including wallets, subject to a system audit and final approval. The approval is an important step for the company’s payments business because it moves the subsidiary closer to launching or expanding wallet services.