Paytm Shares Jump 6% on RBI's In-Principle Payment Aggregator Nod Following Ant Group Exit

Mumbai – The Reserve Bank of India (RBI) has granted "in-principle" authorization to Paytm Payments Services Ltd. (PPSL), a wholly-owned subsidiary of One97 Communications Ltd., to operate as an online payment aggregator. This significant regulatory development, announced on August 12, 2025, comes shortly after China's Ant Group divested its entire stake in the Indian fintech giant, clearing a major hurdle for the company. The approval allows PPSL to onboard new online merchants, a restriction that had been in place since November 2022.

Paytm had faced considerable regulatory scrutiny over the past few years. Its initial application for a payment aggregator license was rejected in November 2022 due due to non-compliance with foreign direct investment (FDI) norms. Additionally, in January 2024, the RBI had ordered Paytm Payments Bank to cease onboarding new customers, citing concerns over regulatory compliance.

A key factor in the recent approval was the complete exit of Ant Group from Paytm. As reported by TechCrunch, Ant Group sold its remaining 5.84% direct stake in One97 Communications for approximately $454 million (₹3,803 crore) through block deals. This move effectively reduced Chinese ownership in the company to zero, addressing the FDI concerns that had previously stalled the license approval.

The "in-principle" authorization signifies a crucial step for Paytm, enabling its PPSL unit to resume onboarding online merchants and expand its digital payments business. This license is vital for the company to facilitate online transactions for businesses, covering various payment methods including cards, net banking, and the Unified Payments Interface (UPI). The RBI, however, has mandated that PPSL undertake a system audit, including a cybersecurity review, and submit a report within six months, failing which the authorization could lapse.

Following the announcement, shares of One97 Communications Ltd. surged, hitting a 52-week high with a jump of nearly 6%. This positive market reaction reflects investor confidence in Paytm's renewed regulatory standing and business prospects. The company also reported a consolidated net profit of ₹122.5 crore in the first quarter of the financial year 2026, a significant turnaround from a loss in the same period last year, with revenue increasing by 27.7%.

This regulatory clearance is expected to bolster Paytm's strategic position in India's competitive digital payments landscape. The ability to control more of its value chain, from offline payment solutions to online gateways, will reduce its reliance on external bank partners and support its long-term growth ambitions in the merchant ecosystem.