Groww Suddenly Exits Payments Battleground, Surrenders RBI License After Two Years
Stockbroking giant Groww has made a significant strategic pivot, reportedly exiting the highly regulated payment aggregator (PA) business. The fintech firm has surrendered its RBI-approved PA license, just two years after securing the crucial approval.The move, reported by The Head and Tale, signals a definitive withdrawal from operating as a payments intermediary for the Bengaluru-based company. Crucially, Groww has not provided a formal announcement or disclosed the specific reason for abandoning the payments vertical.
Strategic Shift: Groww Re-centers on Core Broking Expertise
When it initially entered the payments space in 2023, Groww launched a UPI app. This tool enabled customers to manage services such as bill payments, recharges, and credit card repayments.The latest action strongly suggests a renewed, intense focus on the firm's core strengths: its leading broking and wealth management services. This core area has seen rapid scaling for the platform over the preceding years.
For context, obtaining a PA licence in India mandates stringent requirements. Fintechs must secure RBI authorization, maintain a minimum net worth of ₹ 25 crore, and ensure strict adherence to KYC/AML protocols.
Industry Trends: Competitors Mirroring Groww's Retreat from Payments
Groww is joining a trend, as it is not the sole company to relinquish a PA or wallet license. Earlier in 2024, food delivery leader Zomato also surrendered its payment aggregator and wallet licence.Zomato’s parent firm, Eternal, had received RBI approval in 2022. However, the company subsequently exited the segment without detailing specific reasons, choosing instead to sharpen its focus on quick commerce and food delivery operations.
The broader regulatory landscape for payment aggregators has seen notable shifts. Between 2021 and 2023, the RBI implemented a significantly stricter stance, leading to delays or rejections for many applications due to compliance gaps.
Regulatory Environment: Easing Approvals in the Fintech Sector
The central bank has since demonstrated increased flexibility in the payments ecosystem. In 2025, the regulatory approach eased, making navigation of the PA framework more accessible to various players.This shift saw the central bank accelerating approvals and granting licenses across online, offline, and cross-border categories to major players. Companies mentioned in relation to these recent approvals include Paytm, Razorpay, PayU, Pine Labs, Easebuzz, and Airpay.
For reference, Groww’s parent entity, Billionbrains Garage Ventures Ltd, officially listed on both the NSE and BSE on 12 November 2025. Its IPO, which was open from 4 November to 7 November 2025, carried a price band of ₹ 95- ₹ 100 per share.
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