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RazorPay gets nod from RBI for payment aggregator license

July 08, 2022

RazorPay gets nod from RBI for payment aggregator license
Online payment providers including Razorpay, and Pine Labs are among the top names which have received the in-principle nod from the Reserve Bank of India (RBI) last night for a payment aggregator license, according to multiple sources aware of the discussion.

This comes as over the past few months, the central bank has been holding presentations with payment gateways and other fintech firms that applied for a payment aggregator license.

Now the RBI is expected to release a complete list of the players who have been approved to operate as payment aggregators in the country shortly, the above-mentioned sources added.

The payment aggregator framework, introduced formally in March 2020, mandates that only firms approved by the RBI can acquire and offer payment services to merchants.

The firms authorised to operate as payment aggregators in India will come under the direct purview of the RBI while rendering payment services to merchants. This is a step that many industry insiders said would lead to a more standardised and regulated payments ecosystem.

ET had earlier reported on April 23, that RBI has been strict in its evaluation of entities which have applied for the payment aggregator license. Multiple online payment gateways seeking the aggregator license came under the intense scrutiny of the central bank for know-your-customer (KYC) related issues, past dealings with cryptocurrency exchanges and gaming apps, as well as for not complying with the net worth criteria that RBI had set out.

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