Synopsis:
One 97 Communications surged after its subsidiary Paytm Payments Services Limited secured RBI’s ‘in-principle’ approval to operate as an online Payment Aggregator, lifting prior merchant onboarding restrictions.
India’s fintech space witnessed a boost in sentiment after the central bank extended an important regulatory green light to a leading digital ecosystem operator.
One 97 Communications Ltd, with a market capitalisation of Rs. 74,488.43 crore, opened at Rs. 1,150 against the previous close of Rs. 1,120. The stock hit an intraday high of Rs. 1,187, marking a rise of 5.98 percent from the previous close.
What’s the News?
Paytm Payments Services Limited (PPSL), a wholly-owned subsidiary of One 97 Communications Ltd, has received ‘in-principle’ authorisation from the Reserve Bank of India (RBI) to operate as an online Payment Aggregator (PA) under the Payment and Settlement Systems Act, 2007. This approval is subject to adherence to the PA-PG Guidelines issued on March 17, 2020, and related clarifications from March 31, 2021.
The authorisation only covers online PA operations as defined in the guidelines. Transactions outside this scope, including ‘pay-out’ transactions conducted on behalf of merchants, must not be routed through the escrow account designated for PA operations.
The RBI has directed PPSL to conduct a comprehensive System Audit, including a Cyber Security Audit, by a CERT-In empanelled auditor, a Certified Information Systems Auditor (CISA) registered with ISACA, or a holder of the DISA qualification from ICAI.
The System Audit Report must be submitted within six months, failing which the authorisation will lapse automatically and final approval will not be considered. Importantly, the merchant onboarding restrictions imposed on PPSL on November 25, 2022, have now been withdrawn with immediate effect.
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Q1FY26 Results
On a quarter-on-quarter basis, revenue rose marginally by 0.31 percent to Rs. 1,918 crore from Rs. 1,912 crore, while the company reported a net profit of Rs. 122 crore compared to a net loss of Rs. 545 crore in Q4FY25. Year-on-year, revenue grew by 27.7 percent from Rs. 1,502 crore to Rs. 1,918 crore, with net profit improving to Rs. 122 crore from a net loss of Rs. 840 crore.
About the Company
One 97 Communications Limited, which owns Paytm, offers a digital platform for consumers and merchants across the Payments, Commerce, and Cloud segments. Services include payment facilitation, lending, wealth management, ticketing, and messaging platforms, along with wallet, Paytm Postpaid (BNPL), and net banking for recharges, bills, rent, education, and money transfers.
Written by – Manan Gangwar
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