Opening the app: Open gets RBI approval for a Payment Aggregate License

The company said in a statement on Monday that the new banking platform Open is the latest fintech company to receive initial approval from the Reserve Bank of India (RBI) to act as a payment aggregator. It joins the likes of Infibeam, Innoviti, Razorpay, MSwipe, Stripe, Pine Labs and others in receiving central bank approval.

“We are delighted to receive the RBI’s initial approval for a Payment Aggregator license that will help us enhance the capabilities of our existing products and devise new solutions to automate the finances of millions of SMEs and small businesses in the country,” said Anish Achuthan. Co-founder and CEO of Open.

Earlier this year, Open also received the go-ahead from the Reserve Bank of India (RBI) for its new cross-border payments product after completing the testing phase for its second cohort under the RBI’s regulatory protections.

In March 2020, the Reserve Bank of India (RBI) released the Payment Aggregator Framework which stipulated that all payment gateways are required to obtain a license to acquire merchants, and provide payment services to them.

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

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, it has been strict in its assessment of these apps, sources told ET.

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In May, Open entered the Indian Unicorn League after closing a $50 million funding led by IIFL Finance. The round also saw participation from existing investors Temasek, Tiger Global and 3one4 Capital.

With fundraising, Open was worth $1 billion.

The company, founded in 2017, is a new banking platform that equips small businesses with tools and integrates with their checking accounts. She competes with the likes of Jupiter, Razorpay X, Niyo, and others.

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