Online payment trend will increase in the country, RBI approves 32 companies.
After the trend of online payment increased in the country, many fintech companies entered this segment. Keeping this in mind, now the Reserve Bank of India (RBI) has released a list of 32 such companies, which have been given in-principle approval to grant payment aggregator license. While the names of big companies like Razorpay, Reliance, Google, Zomato and Pine Labs are included in this list, companies like Paytm, Freecharge have proved to be laggards.
183 companies across the country had applied to get the license of payment aggregator. This includes companies like Cred and PhonePe.
Rejected papers of these companies
The Reserve Bank of India has rejected the license applications of Freecharge, Paytm, PayU and Tapits Technologies. While the applications of 18 companies including PhonePe, Cred, MobiKwik and InstaMojo are still being considered.
Cryptocurrencies, gaming apps messed things up
The reason for the rejection of the license application of many online payment gateways has been their association with cryptocurrency transactions or gaming apps in the past. Not only this, the issues related to KYC of all these also came under scrutiny. Also, many companies could not even meet the net worth limit fixed by RBI.
Net worth of fintech companies seeking payment aggregator license should be Rs 15 crore by March 31, 2021 and Rs 25 crore by March 31, 2023.
What is a payment aggregator?
The Payment Aggregator Framework was brought in 2020 to regulate the payment segment in the country. According to this, only those payment aggregators who have got permission to operate from RBI can run payment services. All these are directly monitored by RBI. The whole purpose of this whole exercise is to make the payment ecosystem more regulated and standardised.
