Razorpay gets payment aggregator license from RBI - Elets BFSI
22 October 2024
Razorpay, one of India's fastest-growing fintech companies, has recently obtained preliminary approval for a Payment Aggregator (PA) license from the Reserve Bank of India (RBI).
In March 2022, the RBI introduced a payment aggregator framework, mandating that payment gateways secure licenses to offer digital payment solutions to businesses. Under the Payment and Settlement Systems Act, 2007 (PSSA), non-bank platforms must acquire a license from the RBI to operate legally as payment aggregators.
Razorpay emerged as a leading contender for this license. The company emphasized its commitment to regulatory compliance while innovating in building the financial backbone for Indian businesses. The RBI's stringent evaluation process saw over 185 fintech companies and startups applying for a PA license. A few companies have received in-principle approval so far, with more expected in the coming months.
Razorpay, one of India's fastest-growing fintech companies, has recently obtained preliminary approval for a Payment Aggregator (PA) license from the Reserve Bank of India (RBI). In March 2022, the RBI introduced a payment aggregator framework, mandating that payment gateways secure licenses to offer digital payment solutions to businesses. Under the Payment and Settlement Systems Act, 2007 (PSSA), non-bank platforms must acquire a license from the RBI to operate legally as payment aggregators. Razorpay emerged as a leading contender for this license. The company emphasized its commitment to regulatory compliance while innovating in building the financial backbone for Indian businesses. The RBI's stringent evaluation process saw over 185 fintech companies and startups applying for a PA license. A few companies have received in-principle approval so far, with more expected in the coming months.
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