New Delhi, Aug. 12 -- Troubled unicorn Paytm's payments arm, Paytm Payments Services (PPSL), has received 'in-principle' approval from the banking watchdog, the Reserve Bank of India (RBI), to operate as online aggregator.

The company made the disclosure in a filing with the stock exchanges on August 12, stating: "Regarding the application filed by PPSL, a wholly-owned subsidiary of One 97 Communications, for a Payment Aggregator licence. We would like to inform you that RBI has granted 'in-principle' authorisation to PPSL vide its letter dated August 12, 2025, to operate as an Online Payment Aggregator under the Payment and Settlement Systems Act, 2007."

The RBI's letter added that the merchant onboarding restrictions placed on PPSL in...