The Reserve Bank of India (RBI) has officially granted approval for three additional companies – Juspay, Decentro, and Zoho – to function as payment aggregators within the country. This endorsement empowers these entities to furnish payment services to online merchants, facilitating the acceptance of payments from customers.
Juspay, Decentro, and Zoho now join the ranks of previously authorized companies such as Stripe, Zomato, and Tata Pay, which received approval in January 2023. Noteworthy players in the fintech sector, including Razorpay and Cashfree, had already secured the license in 2022. The cumulative count now stands at eight companies that have successfully obtained the sought-after payments aggregator license from the RBI.
The significance of holding a payments aggregator license lies in the capability it affords companies to extend payment services to online businesses and e-commerce entities. Functioning as payment aggregators empowers these companies to collect payments from customers on behalf of merchants, consolidating the funds before disbursing them to the merchants within a predetermined timeframe.
The eligibility criteria for obtaining a payments aggregator license set by the RBI are stringent, reflecting the regulator's cautious approach in granting such licenses. Some applications have been declined due to companies falling short of meeting all specified criteria. Notably, Instamojo, Paytm Payments Services, and Freecharge had their applications returned, coupled with directives to cease onboarding new merchants.
Decentro specializes in providing neo-banks, marketplaces, and fintechs with integrated banking solutions through its APIs. Juspay operates as a comprehensive payment gateway, supporting cards, wallets, and UPI payments. Zoho, as one of the few enterprise Software as a Service (SaaS) companies with a payments aggregator license, solidifies its position in both business software and payment services.
While these three companies have gained approval, several other notable players are still in the process of seeking final authorization. Pine Labs, Infibeam, PhonePe, and Easebuzz have received in-principle nods but await full authorization. Applications for Cred and PayU are currently under review as of February 2024, with the RBI meticulously evaluating each applicant to ensure compliance with all regulatory requirements before granting the coveted license.
1.Which three companies recently received final authorization from the Reserve Bank of India to operate as payment aggregators in India?
a. Stripe, Zomato, Tata Pay
b. Juspay, Decentro, Zoho
c. Razorpay, Cashfree, Paytm Payments Services
d. Instamojo, Freecharge, Easebuzz
2.What is the significance of holding a payments aggregator license, according to the article?
a. Allows companies to offer banking services
b. Empowers companies to provide payment services to online businesses
c. Grants exclusive discounts to customers
d. Facilitates cryptocurrency transactions
3.How many companies, including Juspay, Decentro, and Zoho, have secured the payments aggregator license from the RBI so far?
a. Six
b. Eight
c. Ten
d. Twelve
4.Why did some applications for the payments aggregator license get returned, according to the article?
a. Exceeded the eligibility criteria
b. Failed to meet all specified criteria
c. Submitted incomplete applications
d. Lack of industry experience
5.What is Zoho's position in the business software and payments sector after obtaining the payments aggregator license?
a. Leading in cryptocurrency solutions
b. Focused on digital marketing services
c. A strong position in business software and payments
d. Specialized in e-commerce platforms
6.What type of services does Decentro offer through its APIs?
a. Food delivery solutions
b. Integrated banking solutions
c. Cryptocurrency trading
d. Social media analytics
7.Which prominent players are mentioned as still awaiting final approval for the payments aggregator license in the article?
a. Juspay, Decentro, Zoho
b. Pine Labs, Infibeam, PhonePe
c. Stripe, Zomato, Tata Pay
d. Razorpay, Cashfree, Paytm Payments Services
8.What is the RBI's approach to granting payments aggregator licenses, as described in the article?
a. Speedy and lenient
b. Cautious and stringent
c. Random selection
d. Based on political affiliations
- b. Juspay, Decentro, Zoho
- b. Empowers companies to provide payment services to online businesses
- b. Eight
- b. Failed to meet all specified criteria
- c. A strong position in business software and payments
- b. Integrated banking solutions
- b. Pine Labs, Infibeam, PhonePe
- b. Cautious and stringent
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