BackRazorpay abides by RBI advisory to pause onboarding online merchants
Razorpay offers services to merchants, schools, ecommerce and other companies to accept and disburse payments online, own a fully-functional current account and avail working capital loans
PremiumThe Reserve Bank of India(RBI) has asked fintech services firm Razorpay to temporarily pause onboarding new online merchants and share additional details required to obtain a "final payment aggregator/payment gateway license".
Razorpay said in a statement on Friday that it has abided by the RBI's regulatory requirement.
"As part of the process for the final authorisation of our PA/PG license for which we received the in-principle approval from RBI in July, we are now required to share additional details with RBI to aid in the final license process," a Razorpay spokesperson said in a statement to ANI.
"As part of this process, the RBI has requested us to temporarily withhold onboarding new online merchants till such details are submitted. As a responsible corporate that operates under the ambit of RBI, Razorpay has abided by the regulatory requirement. We would like to emphasize that this directive of the RBI has no impact on Razorpay’s existing business operations and current merchants," Razporpay spokesperson said.
The spokesperson said that RBI's directions will not impact Razorpay's existing business operation.
"We would like to emphasize that this has no impact on Razorpay's existing business operations and current merchants. Also, we continue to onboard new businesses on other Razorpay services - RazorpayX, Corporate Card, and Offline payments via Ezetap," the statement said.
Razorpay's operations are "fully compliant with all regulatory guidelines" and the company continues to be in touch with RBI for the next steps, it added.
Razorpay was founded by IIT Roorkee alumni and aims to revolutionize money management for online businesses.
It offers services to merchants, schools, ecommerce and other companies to accept and disburse payments online, own a fully-functional current account and avail working capital loans.
RBI issues payment aggregator licence to entities involved in online payment processing while payment gateway permit is meant for entities providing technology for payment processing.
The spokesperson said that Razorpay continues to onboard new businesses on other Razorpay services - RazorpayX, Corporate Card, and Offline payments via Ezetap.
"Razorpay's operations are fully compliant with all regulatory guidelines and the company continues to be in touch with RBI for the next steps," Razporpay spokesperson said.
*With inputs from agencies
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
