PayU secure preliminary approval of RBI
On Tuesday, PayU, a fintech company backed by Prosus, announced that it has received an initial approval from the Reserve Bank of India (RBI) to function as a payment aggregator. With this approval, the company stated that it is now able to begin the process of bringing new merchants onto its platform.
Anirban Mukherjee, CEO of PayU, emphasized the significance of this license in their endeavor to create a globally recognized digital payment framework based in India. He highlighted their alignment with the government’s Digital India initiative and the progressive regulations of the RBI, expressing their commitment to advancing digitization and financial inclusion, especially for small merchants. Typically, it takes six months to a year following the initial approval for a company to secure the final endorsement from the regulator.
Upon obtaining the final approval from the RBI, the company will become part of a cohort that includes Razorpay, Cashfree Payments, CCAvenue, Digio, Decentro, and others. In January of the previous year, the banking regulator requested the fintech firm to submit a fresh application for a payment aggregator license. The intricate corporate framework of the company was cited as one of the reasons for the RBI’s decision to request a reapplication for the license.
