New RBI Rules For Payment Aggregators: Promoting Fair Practices In Online Transactions
Share this article:
The Reserve Bank of India has rolled out definitive directives under the 'Reserve Bank of India (Regulation of Payment Aggregators) Directions, 2025' to streamline operations of payment aggregators. These rules categorise entities into three distinct groups based on their functions, impose stringent net worth requirements , and emphasise proper fund handling to foster transparency and accountability in the digital payments landscape. Effective immediately, the guidelines aim to prevent unchecked behaviours and ensure robust governance, particularly for non-bank entities engaging in such services.
The RBI has divided payment aggregators into three categories based on their functions: PA-P for physical transactions, PA-CB for cross-border payments , and PA-O for online facilitation. Banks are exempt from separate authorisation, simplifying their operations. This structured approach ensures tailored regulation and addresses specific risks in each category.
To maintain high standards, the RBI mandates a minimum net worth of 15 crore rupees for authorisation applicants. Entities must also reach 25 crore rupees by the third financial year post-authorisation. These thresholds promote financial resilience and protect against potential liabilities in the payment ecosystem.
The guidelines prioritise secure fund handling, with detailed rules for escrow accounts. Special attention is given to cross-border payment limits under the PA-CB category, ensuring robust oversight. This focus aims to prevent mismanagement and enhance trust in digital transactions.
Strong governance is a cornerstone of the new framework. Promoters must meet suitability and propriety criteria, while ongoing compliance is enforced through regular checks. These measures aim to create a level playing field and eliminate arbitrary practices among non-bank entities.
These regulations mark a significant step towards a secure and regulated payment landscape. By setting clear standards, the RBI seeks to foster innovation while safeguarding users and businesses. The immediate effect of these rules will shape the future of payment aggregation in India.
With the 2025 directions, the RBI is reinforcing its commitment to a stable and transparent digital payment ecosystem. By categorising entities, enforcing financial norms, and ensuring compliance, these guidelines pave the way for a trusted financial environment.
Classification of Payment Aggregators
The RBI has divided payment aggregators into three categories based on their functions: PA-P for physical transactions, PA-CB for cross-border payments , and PA-O for online facilitation. Banks are exempt from separate authorisation, simplifying their operations. This structured approach ensures tailored regulation and addresses specific risks in each category.
Financial Requirements
To maintain high standards, the RBI mandates a minimum net worth of 15 crore rupees for authorisation applicants. Entities must also reach 25 crore rupees by the third financial year post-authorisation. These thresholds promote financial resilience and protect against potential liabilities in the payment ecosystem.
Fund Management and Escrow Rules
The guidelines prioritise secure fund handling, with detailed rules for escrow accounts. Special attention is given to cross-border payment limits under the PA-CB category, ensuring robust oversight. This focus aims to prevent mismanagement and enhance trust in digital transactions.
Governance and Compliance
Strong governance is a cornerstone of the new framework. Promoters must meet suitability and propriety criteria, while ongoing compliance is enforced through regular checks. These measures aim to create a level playing field and eliminate arbitrary practices among non-bank entities.
Impact on the Industry
These regulations mark a significant step towards a secure and regulated payment landscape. By setting clear standards, the RBI seeks to foster innovation while safeguarding users and businesses. The immediate effect of these rules will shape the future of payment aggregation in India.
With the 2025 directions, the RBI is reinforcing its commitment to a stable and transparent digital payment ecosystem. By categorising entities, enforcing financial norms, and ensuring compliance, these guidelines pave the way for a trusted financial environment.
Next Story