RBI order forces Instamojo to shutter core payments business

The central bank’s rejection of the decade-old company’s application for a payment aggregator licence triggers a pivot and chaos.

Mastercard-backed Instamojo has quietly shut down its payments business. Towards the end of September, the decade-old startup’s application to operate as a licensed payments aggregator was rejected by the Reserve Bank of India on the ground that the company did not fulfil the eligibility criteria set by the central bank and hence, it has now moved away from payments.

Aakash Gehani, co-founder and chief operating officer at Instamojo, confirmed to The Morning Context that the company had taken the step. “Towards the end of September our application got returned by the RBI and it stated that we have to cease …

Author

Ashwin Manikandan

Ashwin covered fintech and banking at The Morning Context. Previously, he was at The Economic Times, where he worked across the finance, tech and startup verticals, breaking stories related to India’s banking system, startups in the new economy, digital payments, insurance and cryptocurrencies.

Writer

ashwin@mailtmc.com

Delhi

Author

Samiksha Goel

Samiksha covered all things startups at The Morning Context. She joined us from The New Indian Express, where she wrote stories on the retail and food sectors. Prior to that, she had covered startups and written various business features in the Deccan Herald.

Writer

samiksha@mailtmc.com

Bengaluru