Fintech giant Razorpay has been asked by the Reserve Bank of India (RBI) to pause the onboarding of new online payment merchants after the central bank asked the Bengaluru-based company to make specific changes and provide more information before securing final payments. PA) license, people matter with the matter told FE.

Another fintech company, Cashfree, was also asked to stop onboarding new customers temporarily, PTI reported.

“As part of moving to a full PA license, Razorpay had to do some system upgrades and move from node accounts to escrow accounts, etc.,” said one of the people quoted above. Razorpay received an approval-in-principle PA license in July.

It is one of several fintech firms to receive RBI-in-principle approval for a PA license. Stripe, MSwipe, Innoviti, and Pine Labs are all licensed. As part of the RBI payment aggregation framework formed in March, only entities approved by the central bank will be able to facilitate payments for merchants and other e-commerce sites.

Razorpay is likely to submit a report to the RBI early next week, and once approved, the company can continue to attract new merchants, one of the people said.

A spokesperson for Razorpay confirmed the development to FE, saying: “As part of the final authorisation process for our PA/PG licence, we received approval-in-principle from the RBI in July, and we now need to work with the RBI to Complete the authorisation process. Process. As part of this process, RBI advised us to temporarily suspend the onboarding of new online merchants until such details are submitted. As a responsible company operating within the purview of RBI, Razorpay has complied with the regulatory requirements.”

“We would like to stress that this has no impact on Razorpay’s existing business operations and existing merchants. In addition, we will continue to develop new businesses through Ezetap on other Razorpay services, RazorpayX, corporate cards and offline payments. Razorpay operates in full compliance with all Regulatory guidelines, and the company will be in touch with the RBI to take the next steps,” the statement said.

With a solid merchant base of 8 million, Razorpay has an annual Total Payment Volume (TPV) of more than $65 billion, one of the largest in the fintech space. Competitors such as Infibeam’s BillDesk and CCAvenue have annual TPVs of around $90 billion and $1.8-2 billion, respectively.

The Tiger Global-backed company was last valued at $7.5 billion and has raised more than $800 million from other investors, including Sequoia Capital and Mastercard.