RBI grants Zaakpay, Mobikwik’s subsidiary, in-principle approval for payment aggregation
- ByStartupStory | October 30, 2023
Fintech company Mobikwik’s payment gateway subsidiary, Zaakpay, has secured in-principle approval from the Reserve Bank of India (RBI) to operate as a payment aggregator (PA). This authorization enables Zaakpay to onboard new merchants, further expanding its capabilities.
Upasana Taku, the co-founder and COO of MobiKwik, expressed enthusiasm for the opportunity to support more businesses and strengthen MobiKwik’s position. He stated, “The opportunity to support more businesses inspires us to continuously enhance the capabilities of our platform. This development reinforces our commitment to further develop MobiKwik into a comprehensive digital banking services platform.”
It’s worth noting that this in-principle approval comes after a two-year journey since Mobikwik initially filed an application with the RBI. In 2021, Mobikwik sought the PA license for Zaakpay, but their application was rejected. Undeterred, the company reapplied in October 2022, eventually gaining the RBI’s approval.
The timing of this development is crucial, as several of India’s leading payment gateway companies are awaiting RBI approval to onboard new merchants onto their platforms.
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In December 2022, Fintech unicorn Razorpay, a prominent payment gateway in India, temporarily halted the onboarding of new online merchants in response to communication from the RBI. This underscores the evolving regulatory landscape for payment gateways and the ongoing efforts to streamline and enhance financial services in India.
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