Thursday, February 16, 2023

RBI denies 57 applications from payment aggregators

RBI rejects 57 payment aggregator applications

 MUMBAI: Freecharge, Paytm Payments Services, PayU, and Tapits Technologies are the four existing payment aggregators that the RBI has rejected, but they can still apply again within 120 days. These four organizations are able to carry on as payment aggregators, but they are unable to accept new merchants.

Merchants are able to offer a wide range of payment options to their customers thanks to payment aggregators, third parties.

The RBI said that it had returned the applications for a license from 17 existing payment aggregators and 40 new applicants when it released a status list of the applications on Wednesday.

Payment aggregators were previously regarded as service providers that were not a part of the financial system because they did not have a license from the RBI. The RBI asked all companies that provide payment aggregator services to apply for a license in March 2021.

IRCTC, Ola Financial Services, and Worldline India are among the businesses whose applications were rejected. Worldline, a payment aggregator already in operation, had withdrawn its application. This market is being dominated by new businesses.

Within 180 days, any rejected entities must cease all activity and close their escrow account if they are already operating as payment aggregators.

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