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Axis Bank's Freecharge Gets Green Light from RBI
17 Oct
Summary
- Freecharge receives RBI in-principle approval for payment aggregator role.
- Approval allows operation in PA-O1 and PA-P1 categories starting FY27.
- Axis Bank saw 34% YoY growth in UPI transaction value in Q2 FY27.
Axis Bank's digital payments arm, Freecharge, has obtained in-principle approval from the Reserve Bank of India (RBI). This approval permits Freecharge to function as a payment aggregator across both online and physical payment categories, effective from the second quarter of fiscal year 2027.
This development aligns with Axis Bank's strategic expansion in digital payments. The bank reported a robust 34% year-on-year increase in UPI transaction value during the July-September quarter. Furthermore, digital transactions accounted for a remarkable 98% of all financial transactions made by individual customers in the same period.
The bank's mobile application, Axis Mobile, boasts approximately 16 million monthly active users, with a substantial portion, around 12 million, being non-Axis Bank customers. Axis Bank also continues to strengthen its merchant payments business, holding a significant market share in terminal acquiring.
Freecharge's regulatory clearance is a key step in Axis Bank's ongoing investment in payment innovation and digital banking. The bank has also introduced new technologies, such as an AI Soundbox, to enhance its digital service offerings.
