The Reserve Bank has reportedly asked online payment gateway PayU India to re-apply for its payment aggregator licence.
The payment aggregator has been asked to re-apply for the licence due to its complex corporate structure.
Hence, PayU India must reapply within for the licence within three months, a news report by The Economic Times said on Wednesday.
As a result, the payment aggregator has stopped onboarding new merchants on its platform.
PayU will work with RBI over the next 120 days to address some aspects and resubmit its application, according to the report.
Nevertheless, the development is not expected to impact the company’s existing online merchants.
In December, the central bank had similarly asked several payment aggregators, including RazorPay and Cashfree, to pause the onboarding of new merchants.
“When we are converting to a full-license from an in-principle license, we have to submit a system audit report to get the full license,” a RazorPay spokesperson told Financial Express in December.
“As a part of the submission of that report, we have to confirm that we have done the migration activity to start operating as a fully licensed entity and we have to submit proof of that. So we have to pause onboarding new online merchants till that migration activity is completed,” the spokesperson said.
Earlier this week, BharatPe and Hitachi Payment Services received an in-principle nod for a payment aggregator license.