Aiming to spice up the fee ecosystem, The Reserve Financial institution of India (RBI) on Tuesday issued draft tips to additional strengthen laws on fee aggregators.
Central banks’s tips additionally cowl the bodily point-of-sale actions of fee aggregators (PAs).
“Given the expansion in digital transactions and the numerous position that PAs play on this house, the present instructions on PAs are proposed to be up to date and canopy, inter alia, KYC and due diligence of retailers, operations in Escrow accounts, and meant to strengthen the fee ecosystem,” RBI stated.
The funds ecosystem in India contains on-line PAs and PAs, which facilitate face-to-face/proximity fee transactions.
On KYC and due diligence, the draft stated the fee aggregators ought to undertake due diligence of retailers onboarded by them in accordance with Buyer Due Diligence (CDD) prescribed in Grasp Instructions on Know Your Buyer (MD-KYC), 2016.
“PAs shall be certain that marketplaces onboarded by them don’t acquire and settle funds for companies not supplied by way of their platform,” stated the draft on which the RBI has invited feedback by Could 31, 2024.
For face-to-face/proximity fee transactions achieved utilizing playing cards, from August 1, 2025, the draft stated no entity within the card transaction/fee chain, aside from the cardboard issuers and/or card networks, shall retailer the Card-on-File (CoF) information.
“Any such information saved beforehand shall be purged,” the draft added.
The draft additional stated non-banks offering PA-P companies ought to have a minimal networth of Rs 15 crore on the time of submitting an software to the RBI for authorisation and a minimal networth of Rs 25 crore by March 31, 2028.
(With PTI inputs)
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