RBI lifts embargo for Razorpay, Cashfree to operate as payment aggregators

The Reserve Bank of India (RBI) has lifted a year-long ban on Razorpay and Cashfree Payments, allowing the fintech companies to resume their online payment aggregator operations and onboard new merchants.

The central bank requested payment companies, including Razorpay, Cashfree, PayU, and Paytm, to halt onboarding new merchants until they obtained the final payment aggregator licence last year.

"Securing the Payment Aggregator (PA) license from the RBI is a pivotal moment for Cashfree Payments, affirming our focus on compliance and highlighting the significance of a well-regulated payments landscape," a Cashfree Payments spokesperson said. 

They added, "We are now onboarding new merchants on our payment gateway. We are very excited about this new phase of our journey, where we continue to drive exponential growth and retain our market leadership as the preferred aggregator in the payments space."

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Also, Razorpay received final authorisation from the RBI to operate as a Payment Aggregator under the Payment Settlements Act, 2007.

A Razorpay spokesperson said, "Having received the new PA license, we now restart onboarding new customers and are committed to serving them with our industry-first payment solutions. We welcome this new development and are delighted to be one of the first Payment Gateways to have received the final PA license from RBI."

The Enforcement Directorate (ED) in India raided offices of RazorPay, Paytm, Cashfree, and PayU due to an FIR related to Chinese fake loan apps, restraining them from onboarding new merchants, in September 2022.