Bengaluru-based fintech startup Open has received the final green light from the Reserve Bank of India (RBI) to function as a Payment Aggregator/Payment Gateway (PA/PG). This recent approval marks a pivotal milestone for the company, which initially secured an in-principle nod from the RBI for the license in 2022.
Expressing his enthusiasm, Anish Achuthan, Open’s Co-founder and CEO, remarked, “We are elated to receive the Payment Aggregator/Payment Gateway licence from the RBI. This approval not only acknowledges our dedication to regulatory standards but also signifies a significant leap in fortifying our commitment to SMEs.”
This significant development enables Open to enhance its financial automation platforms, empowering SMEs with advanced tools to streamline their financial operations in the digital era. Achuthan added, “The enhanced capabilities will bolster our financial automation platforms, providing SMEs with advanced tools to streamline their financial operations and thrive in the digital era.”
The RBI’s active involvement in regulating digital banking platforms aims to safeguard customers and strengthen the security of financial services. Various guidelines have been implemented to achieve these goals, including limitations on lending through prepaid payment instruments and strict oversight on license issuances.
Furthermore, RBI recently lifted a year-long embargo on Razorpay and Cashfree Payments, allowing these companies to resume their online payment aggregator operations and onboard new merchants. Achuthan expressed gratitude, saying, “We are grateful to the RBI for their evaluation and recognition of our contribution.”
Open, established in August 2017 by Anish Achuthan, Mabel Chacko, Deena Jacob, and Ajeesh Achuthan, focuses on assisting small businesses with cash flow management, automating accounting, and accessing credit lines. In May 2022, the company raised $50 million in a Series D round, becoming India’s 100th unicorn, with investments from IIFL, Temasek Holdings, Tiger Global Management, and 3one4 Capital.
