Other BriefingsIndia’s Central Bank Grants ‘In-Principle’ License to 50 Payment Aggregators: Key Details
India’s central bank, the Reserve Bank of India (RBI), recently granted “in-principle” approval to over 50 payment aggregators to act as online payment aggregators. While 32 approvals have been granted to the entities already in operation, 19 applications from new entities have also been approved. We provide a list of all the entities whose applications have been approved, are in process, or have been returned.
On February 15, 2023, India’s central bank, the Reserve Bank of India (RBI), granted ‘in-principle approval’ to 32 existing payment aggregators to act as online payment aggregators. Further, applications from 19 new entities were also approved.
This is the first time the RBI has released such a list of entities, indicative of how seriously it is monitoring developments in India’s digital and payments landscape.
Previously, relevant firms made private announcements about the RBI’s approval; from now onwards, official communication from the central bank can be expected as the sector gets better regulated.
Investors and businesses should note that the entity must receive “authorization” in accordance with section 7 of the Payment and Settlement Systems Act of 2007; the grant of in-principle approval is not equivalent to authorization.
After receiving the in-principle approval, the entity must provide the RBI with a System Audit Report (SAR) and a certificate from a Chartered Accountant (CA) stating that the net worth criterion has been met in order to be considered for “permission” [authorization]. Further, the entities must meet all other Guidelines’ requirements and, if any, additional requirements set down by the RBI.
How does the RBI’s rejection of applications impact popular payment aggregators and consumers?
Apart from granting approvals, the RBI also rejected a large number of applications from payment aggregators, including those from PayTM, PayU, Razorpay, and other companies. As a result, payment aggregators like CCAvenue and Plural from Pine Labs have experienced a rise in new user onboarding and gained more online merchants. According to news sources, CCAvenue saw an 18 percent increase in new online merchant signups on its platform in the third quarter of October through December [2022], just after the RBI prohibited top payment aggregators from onboarding new merchants.
According to industry estimates, 70–80 percent of new online merchant onboardings per month were made through Razorpay, PayU, Paytm, and Cashfree prior to the prohibition. BillDesk continued to lead the pack in terms of total payment value (TPV), followed by the impacted gateways. In an effort to reduce any potential risks and guarantee that they are working with partners who are completely compliant, existing partners of these impacted payment gateways are also bringing on fresh partners as a backup (who have been granted in-principle payment aggregator licenses by the RBI).
Newer direct-to-customer (D2C) and online sellers are likely to be impacted the most by the RBI’s decision and tightening of the online market payment ecosystem. These brands are concerned about issues like scalability and consumer experience.
The RBI’s suspension of new client onboarding, according to reports, has no significant impact on the existing users of the payment gateways in question.
Who are payment aggregators?
Payment aggregators are intermediaries that facilitate payments in online commercial transactions. These entities enable e-commerce websites, mobile apps, and merchants to accept various payment instruments from customers for completion of their payment obligations – without the need for merchants to create a separate payment integration system of their own.
The payment aggregators receive payments from the customers buying online, and subsequently pool and transfer these payments to the merchants after a specific time period.
Eligibility requirement for license to operate as payment aggregator
The payment aggregator applying to the RBI for a license must be a company incorporated in India under the Companies Act, 1956/2013 and the Memorandum of Association (MoA) of the applicant entity must cover the proposed activity of operating as a payment aggregator.
Interesting, the RBI’s guidelines state that such payment aggregators shall be allowed to continue their operations till they receive communication from RBI regarding the status of their application.
Capital requirements
Payment aggregators should have a minimum net worth of INR 150 million (US$1.81 million) as of March 31, 2022, and a net worth of INR 250 million by the end of March 31, 2023. The net worth of INR 250 million (US$3.02 million) shall be maintained at all times thereafter. Payment aggregators that are not able to comply with the net worth requirement within the stipulated time frame shall wind-up their payment aggregation business. The banks maintaining nodal / escrow accounts of such entities shall monitor and report compliance in this regard.
The net worth shall consist of paid-up equity capital, preference shares that are compulsorily convertible to equity, free reserves, balance in share premium account and capital reserves representing surplus arising out of sale proceeds of assets but not reserves created by revaluation of assets adjusted for accumulated loss balance, and book value of intangible assets and deferred revenue expenditure, if any. The compulsorily convertible preference shares can be either non-cumulative or cumulative, and they should be compulsorily convertible into equity shares and the shareholder agreements should specifically prohibit any withdrawal of this preference capital at any time.
Details of payment aggregators with RBI-authorization
Existing entities who can operate as online payment aggregators
Amazon (Pay) India Pvt Ltd, Paymate India Ltd, Razorpay Software Pvt Ltd, Pine Labs Pvt Ltd, and Zomato Payments Pvt Ltd are among the 32 existing payment aggregators that have been granted in-principle authorization. Further, the RBI is still reviewing applications of an additional existing 18 payment aggregators.
Meanwhile, Freecharge Payments Technologies Pvt Ltd, PayTM Payments Services Ltd, PayU Payments Pvt Ltd, and Tapits Technologies Pvt Ltd are the four payment aggregators whose applications were returned by the RBI but are permitted to apply within 120 days from the date of return.
|
List of Existing Entities Which Have Received In-Principle Authorization |
|
|
Sr. no |
Name of the entity |
|
1. |
1Pay Mobileware Private Limited |
|
2. |
Airpay Payment Services Private Limited |
|
3. |
Amazon (Pay) India Private Limited |
|
4. |
Cashfree Payments India Private Limited * |
|
5. |
Computer Age Management Services Limited |
|
6. |
Digiotech Solutions Private Limited |
|
7. |
Easebuzz Private Limited |
|
8. |
Finlogic Technologies India Private Limited |
|
9. |
Futuretek Commerce Private Limited |
|
10. |
Google India Digital Services Private Limited |
|
11. |
IndiaIdeas.com Limited |
|
12. |
Infibeam Avenues Limited |
|
13. |
Innoviti Payment Solutions Private Limited |
|
14. |
In-Solutions Global Limited |
|
15. |
Lyra Network Private Limited |
|
16. |
Mpurse Services Private Limited |
|
17. |
NSDL Database Management Limited |
|
18. |
NTT DATA Payment Services India Limited |
|
19. |
Open Financial Technologies Private Limited |
|
20. |
Paymate India Private Limited |
|
21. |
Paysharp Private Limited |
|
22. |
Phi Commerce Private Limited |
|
23. |
Pine Labs Private Limited |
|
24. |
Razorpay Software Private Limited * |
|
25. |
Reliance Payment Solutions Limited |
|
26. |
SRS Live Technologies Private Limited |
|
27. |
Stripe India Private Limited |
|
28. |
Tyche Payment Solutions Private Limited |
|
29. |
Vay Network Services Private Limited |
|
30. |
Worldline ePayments India Private Limited |
|
31. |
Xsilica Software Solutions Private Limited |
|
32. |
Zomato Payments Private Limited |
|
List of Existing Entities Whose Applications are Under Process |
|
|
Sr. no. |
Name of the entity |
|
1. |
Adyen India Technology Services Private Limited |
|
2. |
Appnit Technologies Private Limited |
|
3. |
Bhartipay Services Private Limited |
|
4. |
Dinero Payment Services Private Limited |
|
5. |
Dreamplug Paytech Solutions Private Limited |
|
6. |
Global Payments Asia-Pacific (India) Private Limited |
|
7. |
Hiveloop Internet Private Limited |
|
8. |
INSOnline India Private Limited |
|
9. |
Instamojo Technologies Private Limited |
|
10. |
Letzpay Solution Private Limited |
|
11. |
LivQuik Technology (India) Private Limited |
|
12. |
Marg Fintech Private Limited |
|
13. |
Nomisma Mobile Solutions Private Limited |
|
14. |
Paygate India Private Limited |
|
15. |
PhonePe Private Limited |
|
16. |
Senrysa Technologies Private Limited |
|
17. |
Unimoni Enterprise Solutions Private Limited |
|
18. |
Zaak Epayment Services Private Limited |
|
Existing Payment Aggregators Whose Applications Were Returned |
||
|
Sr. no |
Name of the entity |
Remarks |
|
1. |
Freecharge Payment Technologies Private Limited |
Application returned on 10.02.2023 |
|
2. |
PayTM Payments Services Limited |
Application returned on 25.11.2022 |
|
3. |
PayU Payments Private Limited |
Application returned on 10.01.2023 |
|
4. |
Tapits Technologies Private Limited |
Application returned on 10.02.2023 |
New payment aggregators who can operate as online payment aggregators
The RBI has given in-principle authorization to 19 organizations among the new payment aggregators. This includes Tata Payments Ltd, Zoho Payment Technologies Pvt Ltd, and Mswipe Technologies Pvt Ltd.
SBI Payment Services Pvt Ltd is one of nine new payment aggregators whose applications are currently being reviewed.
|
List of New Entities Which Have Received In-Principle Authorisation |
|
|
Sr. no |
Name of the entity |
|
1. |
Boku Network Services IN Private Limited |
|
2. |
Concerto Software & Systems Private Limited |
|
3. |
Finacus Solutions Private Limited |
|
4. |
Fourth Dimension Solutions Limited |
|
5. |
Groww Pay Services Private Limited |
|
6. |
Hitachi Payment Services Private Limited |
|
7. |
Instanow Info Systems Private Limited |
|
8. |
Juspay Technologies Private Limited |
|
9. |
MMAD Communications Private Limited |
|
10. |
Mswipe Technologies Private Limited |
|
11. |
Nehat Tech Solutions Private Limited |
|
12. |
Payment Gateway Solutions Private Limited |
|
13. |
R360 Payment Services Private Limited |
|
14. |
Resilient Payments Private Limited |
|
15. |
Tata Payments Limited |
|
16. |
Toucan Payments (India) Private Limited |
|
17. |
Transaction Analysts (India) Private Limited |
|
18. |
Unlimint In Private Limited |
|
19. |
Zoho Payment Technologies Private Limited |
|
List of New Entities Whose Applications are Under Process |
|
|
Sr. no. |
Name of the entity |
|
1. |
Aurionpro Payment Solutions Private Limited |
|
2. |
Decfin Tech Private Limited |
|
3. |
Digidios Payments Services Private Limited |
|
4. |
Integra Micro Systems Private Limited |
|
5. |
KGC Infotech Private Limited |
|
6. |
Nium India Private Limited |
|
7. |
Payglocal Technologies Private Limited |
|
8. |
SBI Payment Services Private Limited |
|
9. |
Sodexo SVC India Private Limited |
Payment aggregators whose applications were returned / withdrawn
Also, 57 payment aggregator applications—some of which were withdrawn—were returned by the RBI. From this list, 17 currently operating payment aggregators were requested to halt their online payment aggregation operations and close their nodal/escrow accounts within 180 days of the application’s return date.
|
List of Payment Aggregators Whose Applications Were Returned / Withdrawn and Thus Cannot Operate |
|||
|
Existing payment aggregators advised to stop online payment aggregation activity and close nodal / escrow account(s) within a period of 180 days from the date of return of application. |
|||
|
Sr no. |
Name of the entity |
Whether existing or / new payment aggregator |
Remarks |
|
1. |
Akonto Payment Solutions Private Limited |
Existing |
Application returned on 19.01.2023 |
|
2. |
Aggrepay Payments Solutions Private Limited |
Existing |
Application returned on 08.02.2023 |
|
3. |
BrokenTusk Technologies Private Limited (Withdrawn) |
Existing |
Application returned on 07.10.2022 |
|
4. |
Ezetap Mobile Solutions Private Limited (Withdrawn) |
Existing |
Application returned on 10.10.2022 |
|
5. |
Flexmoney Technologies Private Limited |
Existing |
Application returned on 17.10.2022 |
|
6. |
fonePaisa Payment Solutions Private Limited |
Existing |
Application returned on 10.10.2022 |
|
7. |
FSS Grameenpay Private Limited |
Existing |
Application returned on 02.02.2022 |
|
8. |
Golden Legand Leasing and Finance Limited |
Existing |
Application returned on 20.01.2023 |
|
9. |
Kopayments Private Limited |
Existing |
Application returned on 29.12.2022 |
|
10. |
Paykun Payment Solutions Private Limited |
Existing |
Application returned on 02.02.2022 |
|
11. |
Payswiff Solutions Private Limited |
Existing |
Application returned on 19.10.2022 |
|
12. |
Synergistic Financial Networks Private Limited (Withdrawn) |
Existing |
Application returned on 07.10.2022 |
|
13. |
Vmobo Mobile Private Limited |
Existing |
Application returned on 08.12.2021 |
|
14. |
Volks Electronics Private Limited |
Existing |
Application returned on 03.12.2021 |
|
15. |
Worldline India Private Limited (Withdrawn) |
Existing |
Application returned on 28.09.2022 |
|
16. |
Wunderbaked Technologies Private Limited |
Existing |
Application returned on 20.01.2023 |
|
17. |
Zenex E-Commerce Private Limited |
Existing |
Application returned on 03.12.2021 |
|
18. |
Aceware Fintech Services Private Limited |
New |
Application returned on 29.11.2022 |
|
19. |
AGDP Fintech Private Limited |
New |
Application returned on 15.12.2021 |
|
20. |
Apexpay Technologies Private Limited |
New |
Application returned on 07.10.2022 |
|
21. |
Asian Checkout Private Limited |
New |
Application returned on 20.10.2022 |
|
22. |
BeBuoy Infoservices Private Limited |
New |
Application returned on 27.11.2020 |
|
23. |
Bongdeal India Private Limited |
New |
Application returned on 10.11.2022 |
|
24. |
CAMS Payment Services Private Limited |
New |
Application returned on 25.10.2021 |
|
25. |
Cash Friend Fintech Private Limited |
New |
Application returned on 10.08.2022 |
|
26. |
Commonwealth Inclusive Growth Services Limited |
New |
Application returned on 07.10.2022 |
|
27. |
Ditya Finance Private Limited |
New |
Application returned on 10.12.2021 |
|
28. |
E-Meditek Global Private Limited |
New |
Application returned on 30.09.2022 |
|
29. |
ePaisa Services Private Limited |
New |
Application returned on 27.07.2020 |
|
30. |
Eutro Agro Products Private Limited |
New |
Application returned on 10.11.2022 |
|
31. |
GoKwik Commerce Solutions Private Limited |
New |
Application returned on 02.11.2022 |
|
32. |
Hindon Mercantile Limited |
New |
Application returned on 10.01.2023 |
|
33. |
InCashMe Mobile Wallet Service Private Limited |
New |
Application returned on 30.05.2022 |
|
34. |
Indian Railway Catering and Tourism Corporation Limited |
New |
Application returned on 26.02.2021 |
|
35. |
Ippopay Technologies Private Limited |
New |
Application returned on 13.02.2023 |
|
36. |
Iserveu Technology Private Limited |
New |
Application returned on 23.09.2021 |
|
37. |
Kashind Financiers Limited |
New |
Application returned on 10.12.2021 |
|
38. |
Kedarpay Solutions Private Limited |
New |
Application returned on 12.01.2023 |
|
39. |
Khatabook Technologies Private Limited |
New |
Application returned on 27.01.2023 |
|
40. |
Kredx Platform Private Limited |
New |
Application returned on 07.12.2022 |
|
41. |
Naffa Innovations Private Limited |
New |
Application returned on 13.10.2021 |
|
42. |
Nearby Technologies Private Limited |
New |
Application returned on 26.07.2022 |
|
43. |
Newbazaar Technologies Private Limited |
New |
Application returned on 10.10.2022 |
|
44. |
Ola Financial Services Private Limited |
New |
Application returned on 28.09.2022 |
|
45. |
Pay Point India Network Private Limited |
New |
Application returned on 28.10.2022 |
|
46. |
Paytekk India Private Limited |
New |
Application returned on 14.10.2022 |
|
47. |
Prevxee E-commerce (India) Private Limited |
New |
Application returned on 10.11.2022 |
|
48. |
Rapyd Aggregator Network India Private Limited |
New |
Application returned on 29.09.2021 |
|
49. |
Rupifi Technology Solutions Private Limited |
New |
Application returned on 10.11.2022 |
|
50. |
Safee Peee India Private Limited |
New |
Application returned on 10.11.2022 |
|
51. |
Safexpay Payments Aggregator Private Limited |
New |
Application returned on 22.11.2021 |
|
52. |
Skilworth Technologies Private Limited |
New |
Application returned on 26.09.2022 |
|
53. |
SPAY Fintech Private Limited |
New |
Application returned on 18.10.2022 |
|
54. |
Twid Rewards Global Private Limited |
New |
Application returned on 07.12.2022 |
|
55. |
Virtual Galaxy Infotech Private Limited |
New |
Application returned on 28.12.2020 |
|
56. |
Yalamanchili Software Exports Private Limited |
New |
Application returned on 29.08.2022 |
|
57. |
Zhudao Infotech Private Limited |
New |
Application returned on 06.01.2023 |
This article was originally published on February 20, 2023. It was last updated February 21, 2023.
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