Cashfree receives RBI approval for payment aggregator license

CIOTechOutlook Team | Friday, 30 September 2022, 03:30 IST

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According to sources with knowledge of the matter, Cashfree Payments has received "in principle" authorisation from the Reserve Bank of India (RBI) to function as a payment aggregator.

This means Cashfree joins Razorpay, Stripe, Pine Labs, MSwipe and Innoviti in receiving the RBI nod for a payment aggregator license.

At least 185 fintech firms — including big names like Cred, Razorpay and PhonePe — had submitted proposals seeking the license, said reports previously.

The payment aggregator framework, introduced formally in March 2020, mandates that only firms approved by the RBI can acquire and offer payment services to merchants.

Over the past several months, RBI has been holding presentations with payment gateway providers and other fintech firms that have applied for the license. However, it has been strict in its evaluation process, sources told.

Some online gateways and payment fintech firms that have sought the license have come under intense scrutiny of late for issues related to know-your-customer (KYC) guidelines and past dealings with cryptocurrency exchanges as well as with gaming apps.

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