ftcash Gets Final RBI Nod To Operate As Online Payment Aggregator

Microlending fintech startup ftcash has received a final authorisation from the Reserve Bank of India (RBI) to operate as an online payment aggregator (PA), joining the list of companies like Razorpay, Cashfree, Innoviti and Easebuzz among others.

Confirming the development to Inc42, a company executive said that the final nod from the RBI was received on March 4.

Cofounder and chief business officer Vaibhav Lodha said that ftcash received an in-principle approval from the central bank last year and the final nod will further add to the credibility of the company.

“This development will further build confidence and credibility among our partners and end users in offering secure digital payment solutions,” Lodha said.

He added that the current development will help the startup to integrate its credit and digital payment solutions.

Founded in 2015 by Lodha, Sandeep Chandak and Deepak Kothari, ftcash provides small businesses (SMEs) and merchants with secured and unsecured loans to help their business grow. It claims to give secured loans up to INR 50 Lakh and unsecured credit up to INR 25 Lakh without any collateral.

Partnering with banking major ICICI, the company launched its Unified Payments Interface (UPI) in 2016 for merchants.

The Mumbai-based startup received its non-banking financial company (NBFC) licence from the central bank back in 2022.

The IvyCap Ventures-backed startup joins a growing list of digital payment solutions provider who have received a licence from the RBI to operate as PAs.

Latest to join the list was Easebuzz that received a final authorisation from the Central bank as an online aggregator last month.While Chennai-based Paysharp, payment solution startup SabPaisa and global digital payment company Stripe were among others who received the license last year.

In March 2020, the RBI released ‘Guidelines on Regulation of Payment Aggregators and Payment Gateways’ urging existing online payment aggregators to apply for seeking authorisation under the Payment and Settlement Systems Act, 2007 (PSS Act).

The framework further mentioned that it mandates all payment aggregators to have a licence in order to acquire merchants and deploy digital payments solutions.

In 2023, the RBI gave in-principle approval to 32 entities and advised people and stakeholders to conduct online payments through platforms who have either received in-principle authorisation or whose applications are under review.