Paytm Moves Offline Merchant Operations to Paytm Services Ltd for Regulatory Compliance

Paytm (One97 Communications Limited), the largest digital payments firm in India, has disclosed the transfer of its offline merchant payment business to its wholly-owned subsidiary, Paytm Services Limited (PPSL). The action is to meet the Payment Aggregator Regulations of the Reserve Bank of India (RBI).

Paytm informed the stock exchanges in a filing that this action is intended to bring the company's online and offline merchant payment businesses under one roof. PPSL already has in-principle permission from the RBI to undertake its payment aggregator (online) business. This will allow for all of the company's payment aggregation operations to be organized under one regulated entity, which will be more efficient and synergistic.

Paytm's transfer will apply to all of its offline merchants that accept payments through QR codes, soundboxes, and EDC machines. This process will be completed through a "slump sale" on a "going concern" basis. The transaction will be approved by PPSL's board and shareholders. The company clarified that this transfer is being made to a subsidiary and will not impact the company's consolidated financial results.

Paytm stated that this move was made to comply with the RBI's Master Directions on Regulation of Payment Aggregators, issued on September 15, 2025. "This transfer is being done to integrate our payment aggregation business and meet RBI's regulatory standards, thereby ensuring better operational efficiency in the future," the company said in a statement.