RBI asks PayU India to reapply for payment aggregator licence
The Reserve Bank of India (RBI) has asked online payment gateway PayU India to reapply for its initial payment aggregator (PA) licence.
The RBI has asked PayU India to reapply for the licence within three months of receiving the central bank’s response to its initial application.
The development was first reported by The Economics Times.
"We have received feedback from RBI on our PA application. We will work with them over the next 120 days to address some aspects and resubmit our application," A PayU India spokesperson told YourStory,
"In the interim, we will pause onboarding of new merchants for our online PA business. There is no impact on our existing online merchants to whom services will continue as usual. Other businesses of PayU Payments including offline and BBPS (Bharat Bill Payment System) are not impacted and can continue as usual and new merchants can be onboarded," the spokesperson added.
On Tuesday, fintech unicorn BharatPe received in-principal approval from the regulator to operate as an online payment aggregator (PA). The approval has been awarded to Resilient Payments Private Limited, a wholly-owned subsidiary of BharatPe.
The final authorisation is subject to the fulfilment of certain conditions.
“BharatPe will now commence work on fulfilling the said conditions within the prescribed timeline and launch the said online PA business upon the receipt of the final authorisation from RBI,” the company said in a statement.
In December, the RBI asked several payment gateway firms including Razorpay–which had received the regulator’s in-principle nod for a PA licence–to stop onboarding new merchants. The regulator had also withheld Paytm's application to provide payment aggregator service for online merchants.
Edited by Affirunisa Kankudti