RBI asks Razorpay, Cashfree to pause onboarding of new customers
New Delhi, Dec 16: The Reserve Bank of India has asked Razorpay and Cashfree to temporarily stop the onboarding of new customers for their payment processing business, according to a source.
On the banking regulator's order, Razorpay said it is a temporary move and has no impact on Razorpay's existing business operations and current merchants.
"RBI has issued an order a few days back asking Razorpay and Cashfree to stop customer onboarding," a source told PTI.
No immediate comments were received from Cashfree.
When contacted, Razorpay said it received in-principle approval from the RBI in July for a payment aggregator and payment gateway licence and the company is now required to share additional details with the RBI to aid in the final license process.
"As part of this process, the RBI has requested us to temporarily withhold onboarding new online merchants till such details are submitted. As a responsible corporate that operates under the ambit of RBI, Razorpay has abided by the regulatory requirement. We would like to emphasize that this directive of the RBI has no impact on Razorpay's existing business operations and current merchants," Razporpay spokesperson said.
RBI issues payment aggregator licence to entities involved in online payment processing while payment gateway permit is meant for entities providing technology for payment processing.
The spokesperson said that Razorpay continues to onboard new businesses on other Razorpay services - RazorpayX, Corporate Card, and Offline payments via Ezetap.
"Razorpay's operations are fully compliant with all regulatory guidelines and the company continues to be in touch with RBI for the next steps," Razporpay spokesperson said.
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Man arrested with Rs 2.54-crore heroin in Mumbai
Mumbai (PTI): Police have arrested a man and seized over 500 grams of heroin worth Rs 2.54 crore in the illicit market from him in Mumbai, officials said on Friday.
The police's Anti-Narcotics Cell (ANC) made the drug seizure in Santacruz in the western suburbs. The operation was conducted by the Kandivali unit of the ANC on Thursday as part of a special crackdown against drug trafficking in the area, they said.
Acting on specific inputs, an ANC team conducted a raid in Santacruz (East) and intercepted a man. During a search, the team recovered 508 grams of high-grade heroin from his possession, an official said.
The seized contraband, a highly addictive, opioid drug derived from morphine, is estimated to be worth Rs 2.54 crore in the international market, he informed.
Following the seizure, a case was registered against the man under relevant sections of the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985, and he was formally placed under arrest in the early hours of Friday.
The police are currently investigating the source of the drug and trying to identify the intended recipients of the consignment, he said.
