A number of payment players, including Razorpay, PineLabs, Stripe and 1Pay, are understood to have received in-principle approval from the Reserve Bank of India for payment aggregator licences.
According to sources, a few more companies are likely to get approval in the coming days.
Payment aggregators (PAs) are entities that facilitate e-commerce sites and merchants to accept various payment instruments from the customers to complete payments without the merchant having to create a separate payment integration system of their own.
The RBI had, in 2020, issued guidelines on regulation of payment aggregators and payment gateways under which non-bank PAs would require the central bank’s authorisation under the Payment and Settlement Systems Act, 2007.
Such entities had to apply for authorisation, but the RBI had permitted them to continue their operations till they receive communication regarding the fate of their application.
A number of companies had applied for these licenses.
Razorpay and PineLabs did not respond to queries from BusinessLine on the approval.
According to the RBI guidelines, existing PAs would be expected to achieve a net-worth of ₹15 crore by March 31, 2021 and a net-worth of ₹25 crore by the end of third financial year, that is on or before March 31, 2023. They would be expected to maintain a net worth of Rs 25 crore from then on.
Published on
July 08, 2022
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