New Delhi: More than an year after receiving in-principle approval, PayU has secured final authorisation from the Reserve Bank of India to operate as an online payment aggregator under the Payment and Settlement Systems Act, 2007. The approval brings the Prosus-backed company into the formal fold of licensed payment aggregators, alongside others like Razorpay, BillDesk, Cashfree Payments and CCAvenue.
“We are pleased to share that PayU Payments Pvt. Ltd. has received final authorisation from the Reserve Bank of India (RBI) to operate as an online payment aggregator under the Payment and Settlement Systems Act, 2007. We are deeply grateful to the RBI for the trust placed in us and for the opportunity to contribute responsibly to India’s dynamic payments ecosystem,” a PayU spokesperson said in a statement.
The Mumbai-based company was asked to reapply for the licence in January 2023 due to what the RBI termed a complex corporate structure. Subsequently, in August that year, PayU sold a portion of its fintech assets to Israel’s Rapyd for $610 million. The sale included its Global Payments Organisation, while keeping its operations in India, Turkey and Southeast Asia outside the transaction.
The final nod allows PayU to onboard new merchants onto its platform, formalising its status in a segment that has seen growing regulatory scrutiny and a tightening of compliance norms. So far in 2025, the RBI has granted final approvals to nine companies to operate as online payment aggregators.
BI Bureau
