Razorpay says it received payment aggregator license from RBI

Fintech major Razorpay on Monday said that Reserve Bank of India (RBI) has given in-principle approval to the company to operate as a payment aggregator.

In order to ensure safety of merchants and consumers, the RBI issued a payment aggregator framework in March 2020 stating that payment gateways will be mandated to have a license in order to acquire merchants and provide them with digital payments acceptance solutions. Under RBI’s evaluation process, more than 185 fintech enterprises and startups submitted their proposals for a payment aggregator license.

The few firms authorized to operate as payment aggregators in India will come under the direct purview of the RBI. Razorpay, in an official statement, stated,  RBI's approval to the company "reiterates the trust placed by over 8 million businesses in Razorpay to boost and support their business growth and endorse Razorpay as India’s preferred full-stack financial platform."

Commenting on receiving the payment aggregator license from the RBI, Harshil Mathur, CEO & co-founder of Razorpay, said, “We are really excited to have received our Payment Aggregator License. We at Razorpay, recognize that we have a responsibility to innovate by not just looking at the future but taking analogies from the past, and strengthening the financial ecosystem of tomorrow, so that millions of businesses, small and big can flourish. This event only further strengthens our commitment to never stop reinventing. We want to create new products and build experiences that will change the lives of millions of businesses and consumers.”

He added, “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. With this trust placed in us, we will continue building the financial backbone for businesses in India, one that is more cashless, more frictionless, more secure, and more connected.”

Further, the fintech company also stated that the payment aggregator license will now help Razorpay further its vision of making digital payments easily accessible for all Indian businesses.