RBI approves PayU to operate as Payment Aggregator

by Psu Connect
Date: 24-04-24

The decision follows the tactics of the Reserve Bank of India while it increased its focus on the payments sector, which involves directing online payment companies to oversee merchants' transaction-related activities and ensure compliance with revised guidelines.

RBI approves PayU to operate as Payment Aggregator

RBI has accorded in-principle approval to the Fintech company, Pay U backed by Prosus, to function as a payment aggregator. The affirmation allows the digital financial services provider to initiate operations with new merchants onto its platform following the in-principle approval.

The decision follows the tactics of the Reserve Bank of India while it increased its focus on the payments sector, which involves directing online payment companies to oversee merchants' transaction-related activities and ensure compliance with revised guidelines.

According to Anirban Mukherjee, CEO, "We would like to thank Reserve Bank of India (RBI) for granting PayU the in-principle approval. We value the trust that RBI has placed in us, and we are ready to welcome new businesses onto our platform."

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The company will join other firms like Razorpay and Cashfree Payments, once it receives the final approval from the Reserve Bank of India.

"This is a testament to our relentless focus on compliance and corporate governance. This license is pivotal in our mission to establish a globally renowned digital payment infrastructure rooted in India," Mukherjee said.

"In alignment with the government's Digital India initiative and the RBI's progressive regulations, we are dedicated to driving digitization and financial inclusion, particularly for small merchants," he further added.

PayU is a payment provider finance company that offers payment gateway solutions to online businesses, catering to a vast network of over 450,000 merchants and providing access to a diverse range of payment methods, totaling over 100 options.