Razorpay on Monday said it has received an in-principle approval by the Reserve Bank of India for Payment Aggregator (PA) license.
“As a company that has always adhered to regulatory governance while innovating towards building the financial backbone for Indian businesses, Razorpay was a leading contender for a payment aggregator license,” it said in a statement.
The RBI issued a payment aggregator framework in March 2020 under which payment gateways were mandated to have a license in order to acquire merchants and provide them with digital payments acceptance solutions.
“With the digital payments space coming under direct RBI regulation, we can expect to not only see an immense upsurge in online payment adoption and trust but also witness a magnified surge in digital payment innovations in the coming years,” said Harshil Mathur, CEO and Co-founder, Razorpay.
The RBI is understood to have given in-principle approval for a Payment Aggregator license to a few firms and a few more are expected in coming months. Over 185 firms have submitted applications for license.