Will regulate activities of payment aggregators in online space: RBI
MUMBAI: The Reserve Bank said it will regulate activities of payment aggregators (PAs) given the important functions of these intermediaries in the online payments space. PAs are entities that facilitate e-commerce sites and merchants to accept various payment instruments from the customers for completion of their payment obligations.
“Based on the feedback received and taking into account the important functions of these intermediaries in the online payments space as also keeping in view their role vis-à-vis handling funds, it has been decided to regulate in entirety the activities of PAs,” the RBI said.
As per the guidelines on regulation of PAs and payment gateways (PGs), the existing PAs should achieve a net-worth of Rs 15 crore by March 31, 2021 and a net-worth of Rs 25 crore on or before March 31, 2023. “The net-worth of Rs 25 crore shall be maintained at all times thereafter,” said the RBI.
New PAs will have a minimum net-worth of Rs 15 crore at the time of application for authorisation and should attain a net-worth of Rs 25 crore by the end of third financial year of grant of authorisation. Also, entities having FDI will be guided by the Consolidated Foreign Direct Investment policy of the government and the relevant foreign exchange management regulations.
PAs will have to put in place a formal, publicly disclosed customer grievance redressal and dispute management framework.
The RBI has also prescribed an indicative baseline technology-related recommendations for adoption by the PAs and PGs. PGs are entities that provide technology infrastructure to route and facilitate processing of an online payment transaction without any involvement in handling of funds.