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RBI’s Vision for Payment Aggregators: Impacts and Opportunities for Businesses”

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RBI Bank of India’s draft regulations for payment aggregators could impact fintechs and Point of Sale operators. Explore insights from experts on compliance challenges, financial requirements, and the potential reshaping of business models.


The Reserve Bank of India (RBI) recently unveiled its draft regulations for payment aggregators (PA), stirring discussions among fintech enthusiasts and stakeholders alike. The proposed guidelines, if fully implemented, could potentially reshape the landscape for fintechs and point-of-sale (PoS) operators, bringing them under a new regulatory umbrella. Experts have weighed in, highlighting potential disruptions to existing business models and the emergence of compliance challenges.

Potential Impact on Business Models

Sharat Chandra, founder of EmpowerEdge Ventures, has drawn attention to critical provisions in the RBI’s draft circular. Notably, the restriction on storing transaction data solely for card issuers and networks carries significant implications for payment gateways and fintech companies. Chandra emphasizes that such measures could escalate compliance burdens and operational costs for payment aggregators, thereby reshaping their business dynamics.

Overview of Proposed Rules

The RBI’s proposed regulations, unveiled on April 16, encompass stringent requirements for payment aggregators, particularly those engaged in physical PoS services. These regulations outline minimum net worth thresholds and compliance timelines aimed at fostering a robust regulatory framework. Banks offering physical payment aggregator services must ensure compliance within three months, while non-bank entities must signal their intent for authorization within 60 days.

Manish Mishra, Co-founder and CEO of GenZCFO notes that the guidelines also introduce licensing frameworks for third-party PoS operators. This development is poised to impact critical players in the sector, including PineLabs, Mswipe Technologies, Paytm, BharatPe, and other third-party PoS solution providers.

Financial Requirements and Compliance Deadlines

The RBI mandates that non-bank entities seeking authorization for physical PA services must maintain a minimum net worth of Rs 15 crore during the application process. By March 31, 2028, existing non-bank entities in this space must elevate their net worth to Rs 25 crore and sustain it after that. Please meet these requirements to avoid the cessation of physical payment aggregator services by July 31, 2025.

Chandra underscores the capital-intensive nature of sustaining net worth requirements, suggesting that only players with substantial financial backing can thrive. Consequently, payment aggregators may push back against stringent net worth mandates, signaling potential industry friction.

KYC and Governance Guidelines

In tandem with the surge in digital transactions, the RBI has updated directives concerning KYC procedures, merchant due diligence, and operational protocols for payment aggregators. The regulatory framework mandates adherence to governance standards, including merchant onboarding protocols, customer grievance redressal mechanisms, and dispute resolution frameworks, within a three-month timeframe.

Adapting to Evolving Governance Standards

The RBI’s emphasis on governance standards reflects a broader commitment to enhancing transparency, accountability, and consumer protection within the payments ecosystem. The updated directives on KYC procedures, merchant due diligence, and dispute resolution frameworks underscore the regulator’s proactive stance toward addressing emerging risks and vulnerabilities.

For payment aggregators, aligning with these evolving governance standards requires a comprehensive overhaul of operational processes and risk management frameworks. Robust KYC protocols, coupled with enhanced fraud prevention measures, become imperative to mitigate potential risks associated with increased transaction volumes and market complexities. Similarly, implementing effective customer grievance redressal mechanisms strengthens consumer confidence and fosters long-term trust in the ecosystem.



As the RBI’s draft regulations for payment aggregators take center stage, the fintech ecosystem braces for transformative shifts. While the proposed guidelines aim to fortify regulatory oversight and enhance consumer protection, they also present formidable challenges for industry players. Navigating the intricacies of compliance, capital requirements, and operational adjustments will be paramount as stakeholders adapt to the evolving regulatory landscape. As discussions unfold and stakeholders engage with the regulatory process, the future trajectory of payment aggregation in India remains poised at a critical juncture.

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