The Reserve Bank of India has asked Razorpay to temporarily stop the onboarding of new customers, while it works to meet certain requirements needed to secure a final payment aggregator (PA) license. According to media sources, other including Cashfree and Stripe have also been instructed to stop onboarding new online retailers.
On the banking regulator’s order, Razorpay said it is a temporary move and has no impact on Razorpay’s existing business operations and current merchants.
“As part of this process, the RBI has requested us to temporarily withhold onboarding new online merchants till such details are submitted. As a responsible corporate that operates under the ambit of RBI, Razorpay has abided by the regulatory requirement. We would like to emphasize that this directive of the RBI has no impact on Razorpay’s existing business operations and current merchants,” Razporpay spokesperson said.
“We haven’t received any communications from the RBI asking us to pause onboarding. We look forward to continuing to operate in India and help Indian businesses process their payments, support their subscription business models, and combat fraud,” said a Stripe spokesperson.
In July, Pine Labs, Razorpay and American payments player Stripe became the first players to receive the in-principle approval for the PA license.