Paytm gets preliminary RBI nod for wallet licence; shares hit record high

Earlier, this year the RBI cancelled the banking licence issued to Paytm Payments Bank.

India's Paytm on Friday received preliminary central bank approval for its payments services unit to issue prepaid payment products, including digital wallets, sending its shares to a record high of 1,960 rupees.

Paytm Payments Services will be able to offer prepaid payment instruments, including wallets. (Representational Image) (Reuters)

Paytm Payments Services will be able to offer prepaid payment instruments, including wallets, to customers after receiving the central bank's final authorisation, the company said in a filing.

The unit can offer these services to customers after receiving the RBI's final authorisation.

The approval comes more than two years after the RBI barred Paytm Payments Bank from accepting fresh deposits and wallet top-ups over persistent regulatory non-compliance and supervisory concerns, effectively halting its normal wallet operations.

Earlier, this year the RBI cancelled the banking licence issued to Paytm Payments Bank.