Several payment gateways like Razorpay, Cashfree, among others, have been asked to temporarily cease onboarding new merchants by the Reserve Bank of India (RBI) until it can comply with their requirements, according to The Economic Times. The decision taken by the RBI is related to the payment-aggregator (PA) licences which were issued to these companies in 2022, the report added. The companies now have to submit a system audit report to the central bank following which the RBI will consider lifting the freeze, as per ET. Razorpay told the business daily that neither its existing operations nor merchants will be affected by this freeze. Why it matters: It may be a matter of concern because it spells regulatory uncertainty for the fintech sector at large. The inability to rope in new customers may not affect their existing business but it is bound to cause disruptions and may force prospective clients to opt for other services. Why the curbs: The central bank wants entities to comply with the payment aggregator guidelines from 2020 as soon as possible in order to onboard new merchants as per the new norms, The Economic Times reported, adding that final licences will be issued only after the compliance. The freeze is even more interesting as the RBI governor Shaktikanta Das held a meeting with fintech companies and associations on December 14, 2022, where he highlighted the proactive and supportive role of the RBI in providing a conducive policy environment for responsible innovation”. Restraints on Paytm: The…
India’s central bank restrains fintech entities like Razorpay from onboarding new merchants: Report
The decision taken by the RBI is related to the payment-aggregator licences which were issued to these companies in 2022.
- Explained: The G20 Task Force On Digital Public Infra for Economic Transformation, Financial Inclusion & Development April 1, 2023
- MediaNama Daily: The Great Indian Surveillance Spectacle April 1, 2023
- Are Courts Doing Enough To Question “Proportionate” Intrusions on Privacy And Other Rights? #NAMA March 31, 2023
- Why did PhonePe cancel its deal to acquire ZestMoney? March 31, 2023
- RTI: Chennai police confirms 9 drones as part of a Drone Police Unit and here’s why it’s important March 31, 2023
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
Amazon announced that it will integrate its logistics network and SmartCommerce services with the Open Network for Digital Commerce (ONDC).
India's smartphone operating system BharOS has received much buzz in the media lately, but does it really merit this attention?
After using the Mapples app as his default navigation app for a week, Sarvesh draws a comparison between Google Maps and Mapples
In the case of the ‘deemed consent' provision in the draft data protection law, brevity comes at the cost of clarity and user protection
The regulatory ambivalence around an instrument so essential to facilitate data exchange – the CM framework – is disconcerting for several reasons.
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
Twitter takes down tweets from MP, MLA, editor criticising handling of pandemic upon government request
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...
Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...