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Shares of Paytm, the parent company of One 97 Communications, have crossed their IPO listing-day high for the first time since the company's stock market debut in November 2021, following a major regulatory development concerning its digital wallet business.
During market hours on Friday, the company announced that its payments services subsidiary, Paytm Payments Services Limited (PPSL), had received preliminary approval from the Reserve Bank of India (RBI) to issue prepaid payment instruments (PPIs), including digital wallets. The development marks a significant regulatory milestone for the company as it looks to revive its wallet business.
Following the announcement, Paytm shares jumped nearly 2% to hit ₹1,960, surpassing their listing-day high of ₹1,955 touched in November 2021. The stock was last seen trading around these levels during its market debut, making Friday's move a significant milestone for investors who have held the stock since its IPO.
The approval is significant because Paytm's wallet operations were affected by regulatory action against Paytm Payments Bank, which had been closely associated with its earlier wallet ecosystem.
On April 24, 2026, the RBI cancelled Paytm Payments Bank's banking licence, prohibiting it from conducting banking business with immediate effect. The latest approval provides a separate regulatory route for Paytm to rebuild its wallet business through PPSL, rather than relying on its former banking subsidiary.
However, PPSL can begin offering these services to customers only after receiving the RBI's final authorisation. To secure the final approval, the subsidiary must complete a comprehensive systems and cybersecurity audit and submit the report to the RBI within six months.
The company had previously applied for a fresh PPI authorisation to revive its wallet offering. The latest development marks an important regulatory milestone in that process, bringing it closer to restarting its digital wallet operations.
It is important to distinguish the latest approval from PPSL's earlier authorisation as an online payment aggregator in August 2025.
While a payment aggregator facilitates payment processing for merchants, a PPI authorisation allows an entity to issue prepaid payment instruments, such as digital wallets. The two licenses cover different activities, making the latest RBI approval particularly important for Paytm's plans to rebuild its wallet business.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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