Fintech firms Razorpay, Cashfree can't onboard new merchants for now

Razorpay said it was a temporary move and will not have any impact on its existing business operations and current merchants

The Reserve Bank of India (RBI) has asked fintech major Razorpay to temporarily pause onboarding of new merchants as part of the process to get the final approval for a payment aggregator/ payment gateway (PA/PG) licence, for which they have already received an in-principle approval from the central bank, sources said.

Multiple reports suggest that other fintech firms such as Cashfree, who received in-principle approvals from the RBI for a PA/PG licence, have also been asked to do the same.

As part of the process to get the final approval, there are certain changes and upgrades the company is supposed