Bengaluru, July 11: Fintech platform Razorpay on Monday said it has received in-principle approval by the Reserve Bank of India (RBI) for a Payment Aggregator (PA) licence.

The central bank issued a payment aggregator framework in March 2020, stating that payment gateways will be mandated to have a licence in order to acquire merchants and provide them with digital payments acceptance solutions.

Under RBI's strict evaluation process, more than 185 fintech enterprises and startups submitted their proposals for a PA licence. Razorpay Fraud: Hackers, Fraudulent Customers Steal Rs 7.38 Crore from Payment Gateway Firm.

"We are really excited to have received our Payment Aggregator Licence. We at Razorpay, recognise that we have a responsibility to innovate by not just looking at the future but taking analogies from the past, and strengthening the financial ecosystem of tomorrow, so that millions of businesses, small and big can flourish, said Harshil Mathur, CEO and Co-founder of Razorpay.

The few firms authorised to operate as payment aggregators in India will come under the direct purview of the RBI.

Established in 2014, the company currently provides technology payment solutions to over 8 million businesses.

"With the digital payments space coming under direct RBI regulation, we can expect to not only see an immense upsurge in online payment adoption and trust but also witness a magnified surge in digital payment innovations in the coming years," said Mathur.

The company has received more than $741 million from investors to date.

(The above story first appeared on LatestLY on Jul 11, 2022 05:58 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).