Cashfree Payments Lays Off 6–8 Per Cent Of Workforce

The layoffs come at a time when the fintech sector is facing tightening of regulations by Reserve Bank of India.

Cashfree payments lays off 6–8 per cent of its employees.

Bengaluru: Online payment service platform Cashfree Payments on Thursday said it has laid-off around 6 to 8 per cent of its workforce. This is in the wake of several big shot companies such as Amazon, Meta, Twitter, Salesforce and others laying off their workforce in order to cut costs.
The Bengaluru-based fintech company has laid off nearly 60–80 of its employee across divisions. Cashfree Payments said that it periodically evaluates performances and this is a part of ‘organizational restructuring.’
“Cashfree Payments has been periodically evaluating performances and processes as a standard business practice. The organisation has reevaluated the relevance of certain roles and functions leading to movement of talent within teams and a few employee exits. This process of organisational restructuring has impacted around 6–8 percent of employees,” a Cashfree Payments representative told Mint.

RBI MONITORING FINTECH SECTOR

The layoffs come at a time when the fintech sector is facing tightening of regulations by Reserve Bank of India. Recently, Reserve Bank of India has asked Razorpay and Cashfree to temporarily stop the onboarding of new customers for their payment processing business, according to news agency PTI.

RBI had introduced the payment aggregator framework in March 2020 which mandates that only firms approved by the RBI can acquire and offer payment services to merchants. The firm has received ‘in-principal’ approval for it.
A payment aggregator license allows firms to process large numbers of payments and also be involved in settling payments. It facilitate ecommerce sites and merchants to accept various payment instruments from the customers for completion of their payment obligations, without the need for merchants to create a separate payment integration system of their own.

This Article is generated by Feed you Can Check Original Article From link given Below.
Article Source link