New Delhi, Nov. 13 -- Paytm has moved a step closer to reviving its digital wallet business after the Reserve Bank of India (RBI) granted preliminary approval to its payments services subsidiary to issue prepaid payment instruments (PPIs), including digital wallets. The development could help the fintech company rebuild a key part of its consumer payments business following regulatory action against Paytm Payments Bank earlier this year.

According to a Reuters report published on November 13, Paytm's payment services unit received preliminary authorisation from the central bank to operate a payment system for issuing prepaid payment instruments. The development also pushed shares of One 97 Communications, Paytm's parent company, to a rec...