RBI grants Paytm relief: company must undergo system audit within 6 months or approval will be revoked

Paytm Payments Services Limited (PPSL), a wholly-owned subsidiary of One 97 Communications, has received preliminary approval from the Reserve Bank of India (RBI) to establish and operate a payment system for issuing prepaid payment instruments (PPIs), which include digital wallets. The company announced this in its regulatory filings on the stock exchange on Friday.

The RBI's Department of Payments and Settlement Systems granted this approval under the Payment and Settlement Systems Act, 2007, in a letter dated November 13. This decision was made in response to an application submitted by PPSL on December 31, 2025. However, this approval is conditional upon compliance with the RBI's Master Directions on Prepaid Payment Instruments dated August 27, 2021, and subsequent amendments.

The obtained consent is only the first step. PPSL can only begin issuing prepaid instruments after receiving final approval or an Authorization Certificate. To do this, the company must conduct a system audit, including a cybersecurity check, by an auditor accredited by CERT-In or a qualified information systems auditor.

This audit must comply with the RBI's Master Directions on Cyber Resilience and Control of Digital Payments for Payment System Operators that are not banks, dated November 5, 2026. The report must be submitted to the RBI within six months; otherwise, the preliminary approval will automatically lapse, and final authorization will not be considered. RBI also reminded PPSL that any changes to its share capital or ownership structure require prior approval according to its norms dated July 4, 2022, for non-bank payment system operators.

One 97 stated that it noted the wallet license application in its first quarter earnings report for the fiscal year 2027. Previously, business wallets were conducted through Paytm Payments Bank, but following regulatory restrictions in 2024, customers were prohibited from topping up their wallets, although withdrawing existing balances remained possible. RBI revoked the bank's license on April 24, 2026, citing non-compliance with licensing conditions. Paytm believes that having a wallet will expand its range of consumer payment offerings.

The announcement impacted Paytm's shares on the stock exchanges. Shares traded on NSE at ₹1,931.30 at 15:06, which was 0.33% higher than the previous close of ₹1,925. During the day, they fell to ₹1,906.70. Most of the recent growth was achieved the day before: shares closed at a 52-week high of ₹1,925 on November 12 after a 7.31% jump, nearly doubling the 52-week low of ₹930.60 from March 30, 2026. Nevertheless, the price remains below the IPO listing price of ₹2,150.

Those who use checkbooks for bank transactions may be concerned about a message going viral on social media. This message claimed that current checkbooks would become obsolete after December 31, 2026, and it would be mandatory to use checkbooks with new security features starting January 1, 2027.

However, the Reserve Bank of India (RBI) has investigated this claim and declared it completely misleading. The central bank has clarified that there are currently no changes being made to the existing Cheque Truncation System (CTS) checkbooks.

According to the message circulated on social media, the existing standard CTS checkbooks used by banks will remain valid until December 31, 2026. Subsequently, new checkbooks with advanced security features and new standards will be implemented from January 1, 2027. This rumor had created doubt among checkbook users as to whether they needed to replace their old checkbooks before the end of the year, or if payments would stop using old checks from 2027. Now, the RBI has clarified the situation regarding all these concerns.

The Reserve Bank of India has stated this viral message as untrue by issuing an official statement on the social media platform 'X'. The central bank acknowledged receiving a message claiming that existing CTS checkbooks should be replaced from December 31, 2026, and checkbooks with new security standards should be implemented from January 1, 2027. RBI emphasized that it is not taking any such step regarding CTS checkbooks currently, so the message being spread on social media is contrary to facts and misleading people.

Furthermore, RBI also clarified that some elements are fraudulently using the name/logo of the Reserve Bank of India and circulating a fake circular in the name of the Governor, indicating a shortage of lower denomination currency notes of ₹10, ₹20, and ₹50 during the upcoming festive season. RBI initially clarified that sufficient notes of all denominations are available in RBI vaults and currency reserves, and the content of the fake circular is misleading. The public has been requested to rely only on information published by RBI in such matters.

In light of RBI's clarification, customers using checkbooks do not need to panic or rush to replace their existing checkbooks for now. The central bank has neither announced a date for discontinuing old CTS checkbooks nor decided to implement new checkbooks from January 1, 2027. This implies that there is no need to go to the bank to replace checkbooks based solely on messages spread on social media. However, if there are any amendments to the rules related to checkbooks in the future, this information will be provided through official announcements by RBI and banks.

RBI has urged the general public to rely only on the official notifications of the central bank for information related to checkbooks and other banking regulations. Do not forward such messages received on social media, WhatsApp, or other platforms without verification. Upon receiving any information about new rules, changes, or deadlines, always confirm it first through the RBI website or your bank's official channels. Doing so will not only protect the individual from misinformation but also keep them away from unnecessary troubles.

A year has passed since the formation of the Eighth Central Pay Commission (8th CPC), yet government employees are still awaiting clarity regarding the timelines for salary review and the date when increased amounts will start being deposited into their bank accounts. The commission's work continues, facing numerous demands, including a request to increase the fitment factor, which plays a key role in salary increases. Nevertheless, the picture regarding the new salary structure remains unclear.

The 8th Pay Commission was given 18 months to submit its report, and 12 months of that period have already passed.

The Eighth Commission was formed by the government led by Prime Minister Narendra Modi on November 3, 2025. Despite the passage of a year, information about salary hikes or the fitment factor remains uncertain. The deadline for submitting the eighth commission's report is set for May 2027, leaving only six months.

Regarding when employees will receive the increased salary, everyone is looking for an answer. The commission must submit its report within 18 months. Furthermore, the salary increase will not happen automatically; first, the government must review the commission's recommendations before deciding whether to accept them entirely or approve them with amendments. Only after receiving government approval will the situation regarding the salary hike become clear.

According to experts, the commission was allocated about 18 months from November 2025 to discuss issues of wages, allowances, and pensions and present its recommendations. Although the 8th CPC is tasked with reviewing salaries effective January 1, 2026, past experience shows that there is usually a delay between the effective date and the receipt of the first increased salary in the account. For example, the salary review under the seventh commission came into effect in January 2016, but Cabinet approval was received in June of the same year, and arrears payments were made in subsequent months.

Since there is no official data yet on the amount of the salary increase after the implementation of the eighth commission, experts are putting forward various assumptions based on employee union demands. Analyzing previous commissions, it is noted that after the introduction of the sixth commission, the average salary increased by approximately 40%. The seventh commission provided employees with a salary increase of about 23–25% with a fitment factor of 2.57. Currently, the main demand for the eighth commission is to set the fitment factor at 3.83, which would lead to a significant salary increase.

It is important to understand that the fitment factor is the metric used by the central pay commission to convert the previously revised basic salary (or pension) into a new, adjusted structure. Any change directly affects the salary, pension, and associated arrears.

How will the salary change on 51000

The significance of the fitment factor is evident in its calculation and impact on salary. The calculation formula is: 'New Basic Salary: Current Basic Salary x FF'. Thus, in the sixth commission, the minimum basic salary was 7 thousand rupees, which grew to 18 thousand rupees after applying a FF of 2.57. If the government approves an increase to 3.83, the minimum basic salary will be 68,940 rupees (18000 x 3.83), leading to a direct salary increase of 51,000 rupees. However, the final decision rests with the government.