The Reserve Bank of India (RBI) has recently introduced regulatory changes that impact the payment gateway ecosystem. This includes compliance and KYC documentation updates for onboarding new customers and a temporary suspension of new customer onboarding for certain payment gateways such as Razorpay, PayU, Paytm, and Cashfree. Additionally, pricing adjustments have been observed in payment gateway (PG) rates, particularly for institutions in the education sector.
This article provides a structured update on these changes and their impact on existing and prospective customers.
Who is affected?
New customers looking to onboard with affected payment gateways.
Existing customers who may need to update KYC documentation to stay compliant.
Educational institutions with specific PG rate adjustments.
Permissions & Dependencies:
Existing customers can continue using payment gateway services without disruption.
Any required KYC updates will be communicated directly by the Customer Success team.
RBI has directed Razorpay, PayU, Paytm, and Cashfree to temporarily halt new customer onboarding due to regulatory concerns and compliance requirements. This ensures that all processes align with RBI's standards for secure financial transactions.
You can read more about this in the news article here.
For our valued existing clients, it's crucial to understand that the temporary onboarding pause primarily pertains to new customers. This regulatory measure does not disrupt the services provided to our current clients. However, if there are any KYC document required for complying with new guidelines by the RBI, you should expect a communication from our Customer Success team. We are committed to maintaining seamless operations for your ongoing business needs.
It's important to note that pricing adjustments have been observed within the realm of payment gateways, affecting existing customers. These adjustments are initiated by the payment gateways themselves, and we want to clarify that we do not have control over these changes. These payment gateway (PG) rates are now linked with the business type within the Education Industry. PG rates for education institutions registered under Trust, Foundation and Societies are subsidized, while other for-profit education institutions registered as limited companies are eligible for PG rates, as applicable for normal e-commerce companies. As these pricing dynamics shift, we remain focused on offering the best support and services possible.
The temporary onboarding pause signifies the industry's collective commitment to regulatory standards. While we are working with other licensed and operational payment gateway partners for facilitating onboarding for potential customers, we believe that adhering to these standards is essential for maintaining a robust and compliant ecosystem.
If you have any questions or concerns regarding how these developments might affect your interactions with us, we're here to assist. Our dedicated support team is ready to provide the information you need, whether you are a current client or considering our services.
While these regulatory changes bring adjustments to the payment gateway landscape, Meritto remains committed to ensuring a seamless experience for its customers. We encourage you to stay updated and reach out to our support team for any concerns regarding compliance, pricing, or alternative payment options.