New Delhi, Nov. 13 -- Paytm has received in-principle authorisation from the Reserve Bank of India (RBI) to issue and operate prepaid payment instruments (PPIs), including digital wallets, through its wholly owned subsidiary, Paytm Payments Services Limited (PPSL).

The authorisation was granted on November 13 under the Payment and Settlement Systems Act, 2007, according to a regulatory disclosure by Paytm's parent company, One 97 Communications.

The approval is subject to compliance with RBI's guidelines for prepaid payment instruments. PPSL will also have to complete a system audit, including a cybersecurity audit, and submit the report to the central bank within six months.

The company can begin issuing wallets only after receiving t...