RBI Tightens the Framework
The Reserve Bank of India has rolled out its final set of rules for payment aggregators, marking an important step in regulating the fast-growing digital payments sector. As per the guidelines, banks will not require specific authorisation to operate as payment aggregators. However, non-banking financial companies must seek approval from the RBI before carrying out such activities.
Capital and Authorisation Requirements
The central bank has set strict capital norms for companies that want to run payment aggregator operations. An entity applying for authorisation must have a minimum net worth of 15 crore rupees at the time of application. Within three years of receiving approval, this net worth must be scaled up to at least 25 crore rupees. These requirements are designed to ensure that only financially strong players enter and sustain themselves in the business.
Customer Protection at the Core
The guidelines emphasize protecting consumers in every transaction. Promoters and directors of entities operating in this space must meet the RBI’s fit and proper criteria. Companies are required to put in place an efficient dispute resolution mechanism to handle transaction-related issues quickly. In addition, strong risk management systems must be established to prevent fraud and enhance trust in digital payments.
Escrow Accounts for Greater Transparency
To safeguard merchants’ funds, non-bank payment aggregators will now have to keep all collections strictly in separate escrow accounts with banks. These accounts must be used exclusively for payment aggregator business, preventing any cross-use of funds and ensuring greater transparency in handling merchant money. The RBI has also reiterated that aggregators must follow its instructions regarding the merchant discount rate to maintain fairness in the system.
Why It Matters
With India’s digital payments ecosystem expanding rapidly, the RBI’s final guidelines bring in much-needed clarity and structure. By setting rules on capital strength, governance, customer protection, and fund management, the regulator aims to ensure that digital transactions remain safe, efficient, and trustworthy for millions of users and businesses.
The Bottom Line
The new rules for payment aggregators reflect the RBI’s continued focus on strengthening India’s digital financial backbone. As digital transactions become central to everyday life, these regulations will help filter out weak players, safeguard consumers, and support sustainable growth in the sector.
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