Razorypay, one of the country’s leading payment processors, has halted the onboarding of new merchants following an advisory issued to them by the Reserve Bank of India.
The action is not punitive in nature and is part of the licencing process.
“As part of the process for the final authorisation of our PA/PG license, for which we received in-principle approval from RBI in July, we are now required to share additional details with RBI to aid in the final license process. As part of this process, RBI has suggested us to temporarily withhold onboarding new online merchants till such details are submitted,” a Razorpay spokesperson told BQ Prime.
The confirmation came after a person aware of the matter, who spoke on condition of anonymity, earlier told BQ Prime that the central bank has asked Razorpay to temporarily stop onboarding new merchants, and the company is required to share additional information related to its payment aggregator licensing process.
The firm expects to be able to fulfill the requirements and start onboarding merchants again in a few weeks, according to the Razorpay spokesperson.
Razorpay, Pine Labs and Stripe were among the first entities granted an in-principle payment aggregator license in July earlier this year.