Cashfree receives RBI nod for payment aggregator license

The Reserve Bank of India (RBI) has given approval “in principle” for cashless payments to act as a payment aggregator, two people with knowledge of the development told ET.

This means that Cashfree joins Razorpay, Stripe, Pine Labs, MSwipe, and Innoviti in receiving an RBI nod for a Payment Aggregate License.

ET previously reported that at least 185 fintech companies — including big names like Cred, Razorpay and PhonePe — had submitted proposals for the license.

Cashfree did not immediately respond to ET inquiries.

The Payment Pool Framework, which was formally introduced in March 2020, states that only RBI-accredited companies can acquire and provide payment services to merchants.

Over the past several months, RBI has been holding presentations with payment gateway providers and other fintech companies that have applied for the license. However, she has been strict in the evaluation process, sources told ET.

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Some of the internet portals and financial payment technology companies that have sought the license have come under intense scrutiny recently for issues with Know Your Customer (KYC) guidelines and prior transactions with cryptocurrency exchanges as well as with gaming applications.

ET reported on July 28 that the Reserve Bank of India (RBI) has opened another window for payment aggregators to seek regulatory approval as stopping those without a license could lead to disruptions in the fintech payments system.

Recently, the Reserve Bank of India rejected MobiKwik’s request to operate Zaakpay, a payment gateway service, as a payment aggregator. MobiKwik co-founder Obasana Taku told ET that MobiKwik will re-apply for the license.

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