The banking regulator Reserve Bank of India (RBI) has returned the applications of prominent online nonbank payment aggregators (PAs) such as Freecharge, Paytm, and PayU, reported Business Line.
The RBI has also returned the application of Tapits Technologies. However, these four PAs have been allowed to apply afresh within 120 days from the date of return.
These PAs, whose applications were returned in the last two months or so, can continue business subject to the condition that no new merchants should be onboarded until advised otherwise, according to Reserve Bank of India’s update on the status of Applications of Online PAs received under the PSS Act.
“PPSL is already in the process of reapplication for a Payment Aggregator license, as we have mentioned in our Q3 earnings release. As we had shared earlier, this does not have any material impact on OCL’s online business and revenues. For offline business, OCL can continue to onboard new merchants and offer them payment services including All-in-One QR, Soundbox, Card Machines, etc,” a Paytm spokesperson said.
PAs are entities that facilitate ecommerce sites and merchants to accept various payment instruments from the customers for completion of their payment obligations without the need for merchants to create a separate payment integration system of their own.
Amazon (Pay) India, Computer Age Management Services, Google India Digital Services, Infibeam Avenues, NSDL Database Management, NTT DATA Payment Services, Pine Labs, Razorpay Software, Reliance Payment Solutions and Zomato Payments are among the 32 existing PAs which have been granted ‘InPrinciple Authorisation,’ allowing them to operate as online PAs.
The applications of 18 other existing PAs including Instamojo Technologies, PhonePe, and Unimoni Enterprise Solutions are under process.
The RBI has granted ‘InPrinciple Authorisation’ to 19 new PAs, including Hitachi Payment Services, Juspay Technologies, Mswipe Technologies, Tata Payments and Zoho Payment Technologies. But they cannot operate yet.
The applications of 9 new PAs, including Aurionpro Payment Solutions, SBI Payment Services, and Sodexo SVC India are under process.