BENGALURU: Fintech unicorn Razorpay has temporarily stopped onboarding new online merchants following an advisory that it received from the Reserve Bank of India (RBI) on Thursday.
As per sources, it will take at least two weeks for the firm to resume its onboarding operations and it has to share additional details with the central bank to aid in the final payment aggregator (PA) licence. It is said this will not have any material impact on its revenues.
Razorpay received approval for the PA license in July. Razorpay, which has about 8 million merchants, in a statement, said, “As a responsible corporation that operates under the ambit of RBI, Razorpay has abided by the regulatory requirement. We would like to emphasize that this has no impact on Razorpay’s existing business operations and current merchants.”
Pine Labs, which received a nod from the RBI in July, said its Plural Payment gateway continues to remain compliant with the PA/PG guidelines. As per reports, Cashfree too received an advisory from the RBI to stop onboarding new merchants. However, Cashfree could not be reached for comments.