EnKash on Wednesday said it has received in-principle approval from the Reserve Bank of India to operate as a payment aggregator (PA).
Founded in 2018, the spending management platform EnKash has helped thousands of businesses to digitize and decentralize their corporate payments.
The licence by the central bank will enable the platform to broaden its product offerings to more number of businesses.
Payment aggregators are intermediaries playing an important function in facilitating payments in the online space.
According to RBI, these aggregators facilitate e-commerce sites and merchants to accept various payment instruments from the customers for the completion of their payment obligations without the need for merchants to create a separate payment integration system of their own.
"We are excited to get in-principle approval from RBI for our payment aggregator license. This will help EnKash offer innovative products and solutions not only to our existing business ecosystem but also to bring about path-breaking and leading technological solutions to the market covering the entire payments flow," said Yadvendra Tyagi, Co-founder of EnKash.
"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," said Tyagi, adding that the RBI's approval reiterates the need for digital solutions to manage business cash flows in an efficient way to sustain growth and profitability.
EnKash now looks forward to bringing product offerings around corporate payments such as forex collections, cross-border payments, and Software-as-a-service collections.
Notably, besides EnKash, several other firms have got RBI's in-principle nod to operate as payment aggregators.
In 2020, the RBI issued guidelines saying firms it approves can only acquire and offer payment services to merchants. Existing non-bank entities offering payment aggregator services shall apply for such authorization.
( With inputs from ANI )
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