RBI asks Razorpay, Cashfree to pause onboarding of new customers

The Reserve Bank of India has asked Razorpay and Cashfree to temporarily stop the onboarding of new customers for their payment processing business, according to a source.

On the banking regulator’s order, Razorpay said it is a temporary move and has no impact on Razorpay’s existing business operations and current merchants.

“RBI has issued an order a few days back asking Razorpay and Cashfree to stop customer onboarding,” a source told PTI.

No immediate comments were received from Cashfree.

When contacted, Razorpay said it received in-principle approval from the RBI in July for a payment aggregator and payment gateway licence and the company is now required to share additional details with the RBI to aid in the final license process.