PayU Payments Receives RBI Nod to Operate as Payment Aggregator
PayU Payments, a leading fintech company that enables online buying and selling and extends the reach of financial services, has received an in-principle nod from the Reserve Bank of India (RBI) to operate as a payment aggregator. This approval will allow PayU to onboard new merchants onto its platform, expanding its reach in the Indian market.
The move by the RBI is seen as a testament to PayU’s commitment to compliance and corporate governance. Notably, this approval comes in the wake of increased scrutiny of the payments sector by the RBI. The central bank has previously directed online payment firms to tighten scrutiny of merchant transactions and ensure proper adherence to guidelines.
PayU had previously faced an initial rejection of its application to operate as a payment aggregator due to its complex corporate structure. However, after extensive discussions with the RBI, the company has now received the necessary approval.
PayU India reported revenue of $400 million in FY23. Although FY24 results are yet to be disclosed, MoneyControl reports that its core payments business revenue increased 15 percent to $211 million in H1 FY24.
This approval from the RBI is a significant milestone for PayU Payments, enabling it to expand its operations and provide a wider range of services to its customers in India.
