PB Fintech, the parent company of Policybazaar, has announced that its wholly owned subsidiary, PB Pay has received in-principle authorisation from the Reserve Bank of India (RBI) to function as an online payment aggregator.
This approval, granted under the Payment and Settlement Systems Act, 2007, is contingent upon PB Pay’s adherence to the RBI’s guidelines on the regulation of payment aggregators and payment gateways, as outlined in the circular dated 17th March, 2020, and subsequent clarifications issued on 31st March, 2021.
This development aligns with PB Fintech’s strategic initiatives to expand its footprint in the FinTech sector. Earlier, the company had received board approval to acquire a 100 per cent stake in UAE-based Genesis Group, aiming to enhance its offerings in the Middle East market.
Additionally, PB Fintech has been actively restructuring its portfolio, including the divestment of a 29.3 per cent stake in Visit Health for Rs 76 crore, while retaining an 8.2 per cent shareholding.
The RBI’s in-principle nod positions PB Pay to enter the competitive digital payments space, joining other entities that have recently received similar approvals. This move is expected to bolster PB Fintech’s service offerings, enabling it to provide comprehensive payment solutions alongside its existing insurance and financial services.
As PB Pay progresses towards fulfilling the necessary regulatory requirements, this authorisation marks a significant milestone in PB Fintech’s journey to diversify and strengthen its presence in the digital financial ecosystem.
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