RBI to extend online payment aggregator guidelines to offline players – The New Indian Express


Express press service

The Reserve Bank of India (RBI) announced on Friday that regulation of online payment aggregators (PAs) will also be extended to offline APs.

Offline payment aggregators handle proximity or face-to-face transactions. As of March 2020, online APs fall under the RBI regulations and this stipulates that only companies approved by the RBI can acquire and offer payment services to merchants.

RBI Governor Shaktikanta Das said, “This move is expected to bring regulatory synergy and convergence on data standards.”

Payment aggregators are service providers that enable merchants as well as e-commerce sites to accept various payment instruments from customers. They offer payment gateways to merchants.

In 2020, the central bank developed detailed guidelines that APs should submit the list of merchants they acquired to the bank where they maintain the escrow account and update it from time to time.

Additionally, banks must ensure that payments are only made to eligible merchants.

Fintech companies such as Razorpay, Pine Labs and 1Pay have received approval in principle to operate as APs. Cashfree is the latest to join the list.

The governor also said Regional Rural Banks (RRBs) are currently permitted to provide internet banking services to their customers.

“Given the need to foster the spread of digital banking in rural areas, these criteria are being streamlined,” he said.

The Reserve Bank of India (RBI) announced on Friday that regulation of online payment aggregators (PAs) will also be extended to offline APs. Offline payment aggregators handle proximity or face-to-face transactions. As of March 2020, online APs fall under the RBI regulations and this stipulates that only companies approved by the RBI can acquire and offer payment services to merchants. RBI Governor Shaktikanta Das said, “This move is expected to bring regulatory synergy and convergence on data standards.” Payment aggregators are service providers that enable merchants as well as e-commerce sites to accept various payment instruments from customers. They offer payment gateways to merchants. In 2020, the central bank developed detailed guidelines that APs should submit the list of merchants they acquired to the bank where they maintain the escrow account and update it from time to time. Additionally, banks must ensure that payments are only made to eligible merchants. Fintech companies such as Razorpay, Pine Labs and 1Pay have received approval in principle to operate as APs. Cashfree is the latest to join the list. The governor also said Regional Rural Banks (RRBs) are currently permitted to provide internet banking services to their customers. “Given the need to foster the spread of digital banking in rural areas, these criteria are being streamlined,” he said.

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