Paytm Update: Paytm has undergone a major reshuffle, bringing its entire payment business under one roof..

Paytm's parent company, One97 Communications Limited, has announced a major strategic move that will transform the company's operations. To comply with strict Reserve Bank of India (RBI) guidelines, the company has approved the transfer of its offline merchant payments business to a wholly-owned subsidiary, Paytm Payments Services Limited (PPSL). This decision was taken to make the company's payments business more streamlined and compliant with regulatory norms.

The company stated in a stock exchange filing that the primary objective of this transfer is to bring the group's online and offline merchant payments businesses under a single entity, PPSL. It is worth noting that PPSL has already received in-principle approval from the RBI to operate as a payment aggregator (online).

Why was this major decision taken?

This entire restructuring is being done to comply with the RBI's Master Directions on Regulation of Payment Aggregators, issued on September 15, 2025. Paytm's offline merchant payments business includes all merchants who accept payments through the company's QR codes, Soundbox, and EDC machines. The transfer of this business will be done through a "slump sale," meaning the entire business is being sold outright. However, final approval from shareholders and the PPSL board is still pending. The company clarified that since this transfer is taking place from a holding company to its 100% subsidiary, it will not impact the company's consolidated financial results.

No Impact on Paytm's Coffers
In fiscal year 2024-25, Paytm's offline merchant payments business recorded revenues of approximately ₹2,580 crore, representing approximately 47 percent of the company's total revenue on a standalone basis. As of March 31, 2025, the net worth of the business being transferred was approximately ₹960 crore, representing 7.45 percent of the company's total standalone net worth. The company expects to complete the transfer process on or before December 31, 2025, subject to all necessary approvals. The entire transaction will be executed under a business transfer agreement and is not part of any scheme of arrangement.

Major changes are underway in the company's entire structure
In addition to integrating the payments business, One97 Communications has also approved a comprehensive internal restructuring plan to simplify its corporate structure. The plan aims to bring several of the company's financial and technology subsidiaries under its direct ownership. The company's board has described this move as a significant step towards simplifying the group's structure and improving transparency and efficiency.

Under this plan, the company will acquire approximately 51.22% equity in Paytm Financial Services Limited from founder Vijay Shekhar Sharma and his company VSS Investco Private Limited. Following this, Paytm Financial Services will become a wholly-owned subsidiary of One97.

In addition, the company will further simplify its structure and bring its shareholdings in companies such as Admirable Software, MobiQuest Mobile Technologies, Urja Money, and FinCollect Services directly under its control. Additionally, the remaining stakes in Paytm Emerging Tech Limited, Paytm InsurTech, and Paytm Life Insurance will also be acquired from Vijay Shekhar Sharma, making these companies wholly-owned subsidiaries. The company has said that all these transactions have been done at fair market value and are expected to be completed by January 31, 2026.

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