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Extension of timeline for submission of applications by Payment Aggregators

Reserve Bank of India (RBI) had extended the timeline for submission of applications for authorisation by Payment Aggregators (PAs).

What are Payment Aggregators (PAs)?

Payment Aggregators (PAs) are entities that facilitate e-commerce sites and merchants to accept various payment instruments from the customers for completion of their payment obligations without the need for merchants to create a separate payment integration system of their own. PAs facilitate merchants to connect with acquirers. In the process, they receive payments from customers, pool and transfer them on to the merchants after a time period.

What are Payment Gateways (PGs)?

Payment Gateways (PGs) are entities that provide technology infrastructure to route and facilitate processing of an online payment transaction without any involvement in handling of funds.

What was the extended timeline for submission of applications for authorisation by PAs?

The online non-bank Payment Aggregators (PAs) existing as on March 17, 2020, were required to apply to Reserve Bank of India (RBI) by September 30, 2021, for seeking authorisation under the Payment and Settlement Systems Act, 2007 (PSS Act).

Keeping in view the disruption caused by the COVID-19 pandemic, and to ensure smooth functioning of the payments ecosystem, all such PAs (existing as on March 17, 2020) were allowed to apply to RBI, by September 30, 2022 and were required to have a net worth of ₹15 crore as on March 31, 2022. They were also permitted to continue their operations till they receive communication from RBI regarding the fate of their application. 

The timeline of March 31, 2023, for achieving the net worth of ₹25 crore, however, remained.


References

Reserve Bank of India. (2020, March 17). 'Guidelines on Regulation of Payment Aggregators and Payment Gateways (Updated as on November 17, 2020)'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11822&Mode=0

Reserve Bank of India. (2022, July 28). 'Regulation of Payment Aggregators – Timeline for submission of applications for authorisation – Review'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12362&Mode=0


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