Foodtech giant Zomato‘s subsidiary, Zomato Payment Private Limited (ZPPL), has opted to voluntarily surrender the certificate of authorization granted by the Reserve Bank of India (RBI) for its operation as an online payment aggregator.
The company announced this in its Q4 FY24 financial filings.
Additionally, it stated, “ZPPL has also chosen to voluntarily withdraw its application with the RBI (for which it previously received provisional authorization) to function as an issuer of pre-paid payment instruments under the Payment and Settlement Systems Act, 2007, and the Master Direction on Prepaid Payment Instruments. Nonetheless, ZPPL’s other operations will persist.”
This development comes months after the company obtained the license from the central bank to function as an online payment aggregator, effective from January 24, 2024.
Continue Exploring: Zomato’s ZPPL gets green light from RBI to operate as online payment aggregator
In 2021, Zomato announced the establishment of ZPPL, its wholly owned subsidiary, tasked with conducting business as a payment aggregator and an issuer of prepaid payment instruments.
It’s worth mentioning that Zomato introduced an in-house Unified Payments Interface (UPI) service for both peer-to-peer (P2P) and merchant transactions last year. However, there were also reports indicating that the company temporarily halted the onboarding of new users in its UPI vertical.
Continue Exploring: Zomato’s Q4 net profit surges 27% quarter-over-quarter to INR 175 Cr
