RBI asks Razorpay to pause onboarding merchants

Fintech giant Razorpay has been asked by the Reserve Bank of India (RBI) to pause onboarding of new online payment merchants as the central bank requires the Bengaluru-based company to make certain changes and provide more information before it is granted the final payment aggregator (PA) licence, people aware of the matter told FE.

According to a PTI report, Cashfree, another fintech firm, has also been asked to to temporarily stop onboarding new customers. No immediate comments were received from Cashfree, it said.

“As part of the migration to a full PA licence, Razorpay will have to make some systematic upgrades and migrations to an escrow account from a nodal account, among a few other things,” one of the sources cited above said.