Razorpay, Pine Labs among firsts to receive RBI in-principle approval for payment aggregator license

8 Jul 2022 , 01:16 PM

Online payment providers Razorpay and Pine Labs are among the top names that received an in-principle nod from the Reserve Bank of India (RBI) last night for a payment aggregator license.

As the central bank was holding presentations with payment gateways and other fintech firms which applied for a payment aggregator license, it now nods for the license.

Now, it is expected that RBI will soon roll out a complete list of companies who have been approved to operate as payment aggregators, stated the sources.

As per the terms & conditions of the payment aggregator framework, only RBI-approved firms can acquire and offer payment services to merchants. The framework was formally introduced in March 2020.

The firms authorized to operate as payment aggregators in India will be under the direct supervision of the RBI while rendering payment services to merchants. According to industry insiders, this step will enable more standardized and regulated payments ecosystem.

According to RBI rules, payment aggregators must have a net worth of Rs15 crore on the date of their applications or as of March 31, 2021, and Rs25 crore by the end of the current fiscal year FY23.

At least 185 fintech companies, including household names such as Cred, Razorpay, and PhonePe, had submitted proposals for payment aggregator licenses.

The regulator responded immediately to companies whose licenses have been rejected.