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HomeTechRBI grants in-principle approval for payment aggregator licence to EnKash

RBI grants in-principle approval for payment aggregator licence to EnKash

Fintech startup EnKash said on Wednesday it has received in-principle approval from RBI for payment aggregator‘s licence. The licence will enable EnKash to broaden its product offerings to millions of businesses for digital transactions.

Founded in 2018, EnKash claims to have assisted 1 lakh businesses to digitise and decentralise their corporate payments.

“RBI’s in-principle approval to EnKash reiterates the need for digital solutions to manage business cash flows in an efficient way to sustain growth and profitability. This will help us streamline the cash flow process for businesses where they will be able to seamlessly consolidate their all payable and receivable and make necessary actions around payments,” EnKash co-founder Yadvendra Tyagi said.

The company had raised $20 million in a Series-B funding round led by Ascent Capital with participation from Baring India, White Ventures & existing investors in 2022.

Meanwhile, end-to-end payment solutions provider Hitachi Payment Services and fintech unicorn BharatPe also said on Tuesday that they had received in principle nod from RBI for a payment aggregator licence.

All three firms have joined fintech platforms such as Open, Infibeam, Cashfree, Paysharp and Worldline ePayments which already have such approvals in place.

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In March 2020, the RBI released the payment aggregator framework, wherein all payment gateways were required to obtain a licence to acquire merchants and offer them payments services.Following this, at least 185 fintech companies, including big names like Cred, Razorpay, and PhonePe, submitted proposals seeking the licence, ET reported earlier.

Last month, ET reported that RBI had asked multiple payment gateways, including Razorpay, which received the regulator’s in-principle approval for the licence, to stop onboarding new merchants.

RBI has also asked payment services provider Cashfree to stop self-onboarding services for its new merchants and step up checks.

Payment aggregators help e-commerce sites as well as merchants accept various payment instruments from customers to complete their payment obligations.

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