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Instamojo, the payouts and aggregator function will be carried out in collaboration with additional payment aggregators that hold licences. Following the Reserve Bank of India's denial of its application for a licence to function as a payment aggregator, the action was taken.
The Morning Context was the first to report on the matter. The RBI denied Instamojo's licence, stating that the company did not match the eligibility requirements. Additionally, according to the RBI's official website, the application was returned in September of this year, as per reported by entrackr.
“… The aggregator/ payouts function will now be undertaken in partnership with other licensed PAs while our payment gateway continues to be fully functional. We also have the window open to reapply for the PA license in the next financial year. In compliance with this notification, we settled all the funds in our nodal accounts into our merchant accounts to mitigate any challenges with respect to payouts and refunds,” “… The aggregator/ payouts function will now be undertaken in partnership with other licensed PAs while our payment gateway continues to be fully functional. We also have the window open to reapply for the PA license in the next financial year. In compliance with this notification, we settled all the funds in our nodal accounts into our merchant accounts to mitigate any challenges with respect to payouts and refunds,” Akash Gehani said in a statement.
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The D2C-focused Instamojo was founded in 2012 by Sampad Swain, Aditya Sengupta, and Gehani. It provides features like an e-commerce website builder, a one-page landing page, and payment connections. Many well-known investors, including Mastercard and Kalaari Capital, are supporting the firm. The company has raised $15.2 million in funding thus far.
