The Reserve Bank of India (“RBI”) has issued the Reserve Bank of India (Regulation of Payment Aggregators) Directions, 2025 (“2025 Directions”).
The 2025 Directions entail the following:
- Rationalisation of the definition of various categories of Payment Aggregators (“PAs”);
- The authorisation process;
- The process for carrying out due diligence of merchants by PAs;
- Permissible operations in escrow accounts;
- Periodic reports that have to be submitted
Key Takeaways:
- Authorisation:
- A non bank entity has to apply for authorisation through the online portal of RBI.
- An entity, regulated by any of the financial sector regulator(s), shall apply along with a ‘No Objection Certificate’ (NOC) from such regulator(s), within 45 days of obtaining the NOC.
- A Payment Aggregator having a Certificate of Authorisation (CoA) issued by RBI, and
- already carrying on business as a PA-P – shall intimate RBI. A revised CoA shall be issued to the PA.
- desirous of commencing business in another PA category – shall intimate RBI at least 30 days prior to commencing the new business.
- Capital Requirements:
- For an entity seeking authorisation, to commence or carry on PA business must have net-worth of ₹15 crore at the time of tendering application and shall attain a minimum net-worth of ₹25 crore by the end of third financial year of grant of authorisation.
- The minimum networth, as applicable, has to be maintained by a PA on an ongoing basis.
- Governance:
- A Payment Aggregator must have a dispute resolution mechanism to handle payment related disputes in transactions facilitated by it.
- The mechanism should also include timelines for processing refunds, etc.
- The policy has to ensure adherence to the instructions issued by RBI including on Turn Around Time (TAT) for resolution of failed transactions.
- Security, Fraud Prevention and Risk Management Framework:
- Adequate Information and Data Security infrastructure and systems for detection and prevention of frauds have to be put in place.
- Specific data storage requirements mentioned in RBI circular DPSS.CO.OD No.2785/06.08.005/2017-2018 dated April 6, 2018 has to be complied with.
- Reports to be submitted:
| Frequency | Details of reports to be submitted |
| Annual | Net-worth Certificate – Audited Annual report with statutory auditor certificate on Net-worth – by September 30th |
| IS Audit Report and Cyber Security Audit Report with observations noted | |
| Quarterly
|
Auditor’s Certificate on Maintenance of Balance in Escrow Account – by 15th of the month following the quarter end |
| Bankers’ Certificate on Escrow Account Debits and Credits – Internally Audited – by 15th of the month following the quarter end in case of PA – O and PA – P. | |
| Bankers’ Certificate on InCA / OCA Debits and Credits – Internally Audited – by 15th of the month following the quarter end in case of PA – CB. | |
| Monthly | Statistics of Transactions Handled – by 7th of next month |
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Source: Reserve Bank of India
