Razorpay, Cashfree, Google Pay get RBI nod for payment aggregator business, Paytm and PayU still ‘barred’

Digital payment startups Razorpay and Cashfree have reportedly received the final approval from the Reserve Bank of India (RBI) to operate as payment aggregators. According to a report in Economic Times (ET), the approval comes after nearly a year-long embargo, paving the way for them to add new merchants and accelerate growth. The RBI nod brings these payment companies within the regulatory fold of the central bank for the first time.

Spokespeople at Cashfree and Razorpay confirmed to ET the development and said that they are open to onboarding fresh merchants. In a statement, Open Financial cofounder Anish Achuthan said that the licence will enable them to offer all forms of financial tools to small and medium enterprises.