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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Mother of Pahalgam attack victim backs operation Sindoor, calls PM's move the 'right decision'
Shivamogga: One of the martyrs of Pahalgam terror attack's mother, Manjunath Rao, Sumathi, welcomed the decision of Prime Minister Narendra Modi to initiate Operation Sindoor with a view to attacking terror network in Pakistan and Pakistan-occupied Kashmir.
Manjunath Rao, realtor from Shivamogga got martyred on April 22 terror attack and has left behind his wife, son, and mother.
Speaking to the media in Shivamogga on May 7, Sumathi said, “We stand with the decision of our PM. If India is considered a family, the PM is the head of the family. He has taken the right decision.”
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