Paytm Shares Rally to an All-Time High After RBI Clears Path for Payment Aggregator Operations

India’s fintech giant Paytm saw its shares jump to a 52-week high after the Reserve Bank of India (RBI) granted in-principle approval to its payments arm, Paytm Payments Services Ltd (PPSL), to operate as an online payment aggregator (OPA). The move lifts a nearly three-year freeze on merchant onboarding and marks a key regulatory win.

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A Long-Awaited Approval

Paytm had previously faced regulatory obstacles—PPSL’s application for OPA licence was rejected in 2022 due to non-compliance with foreign direct investment (FDI) rules. The new RBI nod signals a resolution to those issues.

Merchant Onboarding Restrictions Lifted

The regulatory letter dated August 12, 2025, officially withdraws the merchant onboarding ban imposed since November 2022, enabling PPSL to once again sign up new merchants across India.

Conditions Apply

The approval comes with a caveat. PPSL must complete a system and cybersecurity audit by a certified auditor and submit the report within six months. Non-compliance would result in automatic expiry of the in-principle "O.P.A." authorisation. Additionally, coverage is confined strictly to payment aggregator operations; other types of transactions remain excluded.

Market Response and Investor Enthusiasm

The market as a whole cheered the regulatory innovation. Shares of One97 Communications, the parent company of Paytm, increased by about 5% to 6%, the highest level in 52 weeks. Currently trading at ₹1,160.60 (3.66%), Analysts anticipate a favourable effect on revenue and investor mood and see the move as a clear indication that Paytm's core payments operation is stabilising.

Broader Impact and Turning Point

This approval is especially timely, coinciding with Paytm reporting its first quarterly profit in Q1 FY26. Many see it as a turning point, with optimism returning to the fintech amid a challenging regulatory backdrop.

Conclusion

RBI’s in-principle OPA licence for Paytm Payments Services promises to lift the fintech from regulatory shadows into renewed growth potential. While conditions remain, merchant onboarding can restart, digital transaction volumes are set to rise, and investor confidence appears restored. For Paytm, the path ahead looks more promising—provided it lives up to compliance requirements.