Fintech platform Razorpay received in-principle approval by the Reserve Bank of India (RBI) for a Payment Aggregator (PA) license.

In March 2020, the central bank released a framework for payment aggregators that stated licences will be required of payment gateways in order to acquire businesses and offer them solutions for accepting digital payments.

More than 185 fintech businesses and startups submitted their applications for a licence to operate a payment aggregator as part of RBI's stringent screening procedure.

"We are really excited to have received our Payment Aggregator License. We at Razorpay, recognise that we have a responsibility to innovate by not just looking at the future but taking analogies from the past, and strengthening the financial ecosystem of tomorrow, so that millions of businesses, small and big can flourish, said Harshil Mathur, CEO abd Co-founder of Razorpay.

The few companies that have been granted permission to function as payment aggregators in India would be directly under the control of the RBI.

The company, which was founded in 2014, currently offers digital payment solutions to more than 8 million organisations.

"With the digital payments space coming under direct RBI regulation, we can expect to not only see an immense upsurge in online payment adoption and trust but also witness a magnified surge in digital payment innovations in the coming years," said Mathur.

Investors have given the business more than $741 million so far.