CAMS Receives RBI Authorization As Online Payment Aggregator; What Did The Management Say?

Computer Age Management Services (CAMS), on April 10 announced that the Reserve Bank of India (RBI) has granted it the authorization to operate as an online payment aggregator.

This development follows an in-principle authorization issued by the RBI to CAMS back in February 2023. According to a statement released by the company, the certificate of authorization was formally received on April 10, marking an important moment for CAMS in expanding its financial services portfolio.

CAMS' payment business unit, CAMSPay, currently caters to a diverse clientele comprising mutual funds, insurance companies, banks, and non-banking financial companies (NBFCs). The company's foray into online payment aggregation further strengthens its position in the rapidly evolving digital payments landscape.

Last month, CAMSPay recorded a milestone by registering over 1.2 million mandates for UPI Autopay, highlighting the company's growing influence in the digital payments segment. This surge in mandates underscores the increasing adoption of digital payment solutions facilitated by CAMS among consumers and businesses alike.

Upon receiving the in-principle authorization in February, CAMSPay CEO Vasanth Jeyapaul expressed optimism about the license's potential to enhance the company's offerings in the payments domain. Jeyapaul emphasized that the authorization would enable CAMS to bolster its digital payment stack, catering to a broader spectrum of merchant segments and providing a diverse array of acceptance options.

"We are thrilled to receive the in-principle authorization to operate as a payment aggregator, allowing us to create a much more robust and inclusive digital payment ecosystem," remarked Jeyapaul in February.

The news of CAMS' authorization as an online payment aggregator has resonated positively with investors, as reflected in the company's stock performance. On Wednesday's trading session, shares of Computer Age Management Systems (CAMS) closed with gains of nearly 2% at Rs 3,055.80 per share on the Bombay Stock Exchange (BSE). Over the past year, CAMS' stock has witnessed an impressive uptrend, appreciating by nearly 40%.