PB Fintech on Friday said its wholly owned subsidiary, PB Pay, has received a Certificate of Authorisation from the Reserve Bank of India to operate as a payment aggregator, marking a key regulatory milestone for the group’s payments business.
The authorisation, effective 6 February, allows PB Pay to commence payment aggregation services in line with RBI regulations. The certificate has been issued without any conditions, penalties or withdrawals, enabling the subsidiary to legally undertake payment processing activities for merchants.
Separately, PB Fintech has rejected reports suggesting that it is preparing to revive a large fund-raising plan through a qualified institutional placement. According to media reports, the Policybazaar parent was expected to revisit a proposal to raise up to USD 1 billion via a QIP after pausing the plan earlier amid shareholder concerns over timing, valuation and capital allocation priorities.
Media reports had said the company was in discussions with existing and potential investors and had appointed Kotak Mahindra Capital, IIFL Capital Services, and local units of HSBC and Citigroup as advisers for the proposed transaction. The fundraise was earlier intended to support potential global acquisitions.
However, in a late-evening exchange filing, PB Fintech said the reports were “factually untrue”, adding that neither the management nor the board is currently considering a qualified institutional placement. The company had earlier cancelled a board meeting scheduled to evaluate the proposed fundraise.