RBI issues Regulation of Payment Aggregators Directions, 2025
Reserve Bank of India (RBI) Issues “Regulation of Payment Aggregators” Directions, 2025
The Reserve Bank of India (RBI) has today issued the Reserve Bank of India (Regulation of Payment Aggregators) Directions, 2025.
The draft directions on regulating Payment Aggregators (PAs) were initially released on April 16, 2024, seeking feedback from stakeholders. The draft framework proposed guidelines for the regulation of PAs handling proximity or face-to-face payments, along with suggested amendments to the existing regulatory framework for PAs.
During the stakeholder consultation process, valuable inputs were received from Payment Aggregators, banks, other payment system providers, industry associations, legal experts, and individuals. These inputs have been carefully reviewed and incorporated into the final Directions.
In an effort to consolidate the regulatory framework for Payment Aggregators, the new Master Direction also integrates provisions related to PA – Cross Border operations, as outlined in RBI’s circular CO.DPSS.POLC.No.S-786/02-14-008/2023-24 dated October 31, 2023, with appropriate modifications based on stakeholder feedback.
Key highlights of the Directions include:
- Streamlined definitions for various categories of Payment Aggregators;
- The authorisation and registration process for PAs;
- Guidelines for conducting due diligence on merchants by PAs;
- Rules governing permissible operations in escrow accounts.
The Directions will take effect immediately, unless specified otherwise.
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