RBI grants preliminary approval to Mobikwik's Zaakpay
By siliconindia | Tuesday, 31 October 2023, 08:45 IST
Mobikwik's payment gateway subsidiary, Zaakpay, has received preliminary approval from the Reserve Bank of India (RBI) to operate as a payment aggregator (PA). This approval allows Zaakpay to bring onboard new merchants, thus expanding its services. Upasana Taku, MobiKwik's Co-founder and COO, expressed excitement about the chance to assist more businesses and strengthen MobiKwik's position. Taku said, "The opportunity to support a broader range of businesses motivates us to continuously improve our platform's capabilities. This development underscores our commitment to further evolve MobiKwik into a comprehensive digital banking services platform".
This preliminary approval is the result of a two-year journey since Mobikwik first submitted its application to the RBI. In 2021, Mobikwik initially applied for a payment aggregator (PA) license for Zaakpay, but their application was declined. Undaunted, the company reapplied in October 2022, ultimately receiving the RBI's approval. The timing of this development is significant because many of India's leading payment gateway companies are awaiting RBI's approval to bring new merchants onto their platforms.
In December 2022, Razorpay, a prominent fintech unicorn and payment gateway in India, temporarily suspended the onboarding of new online merchants in response to communication from the RBI. This highlights the changing regulatory landscape for payment gateways and the ongoing efforts to streamline and improve financial services in India.
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