Shares of Infibeam Avenues soared 16 per cent in Friday's trade after the fintech company received an in-principle authorisation from the RBI to operate as a payment aggregator.
In a press release, post market hours of Thursday, Infibeam said that the authorisation permits it to operate as a payment aggregator and provide digital payments services to any merchant online or offline across the country.
"Under this provision, the fintech major will get a substantial boost to further expand its reach in multiple business segments for both online and recently launched offline digital transactions," the company said.
Following the announcement, shares of Infibeam surged 16.44 per cent to hit a high of Rs 16.85 on BSE. Despite this, the scrip is still down 18 per cent year-to-date.
The RBI had in March issued a framework for payment aggregators in India. Under the framework, payment aggregators were mandated to obtain a license for acquiring merchants and provide them with digital payment acceptance solutions.
This was done primarily to ensure the safety of merchants and consumers.
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