Sources told Moneycontrol that, one of the country’s leading payment gateways, Fintech unicorn Razorpay, has paused onboarding of new online merchants to comply with a communication that it received from the Reserve Bank of India.
According to one of the sources, the RBI has advised Razorpay to pause onboarding beginning December 15, 2022, until it can comply with a few guidelines required to obtain a final payment aggregator (PA) license.
Cashfree and Stripe, which ate backed by the State Bank of India, has also received an advisory to stop onboarding new online merchants, as per media reports.
Cashfree and Stripe could not be reached immediately for a comment.
Pine Labs, Razorpay and American payments player Stripe became the first players to receive the in-principle approval for the PA license in July.