The draft additionally covers the bodily point-of-sale actions of cost aggregators (PAs).
New Delhi:
The Reserve Financial institution on Tuesday got here out with draft pointers to additional strengthen laws on cost aggregators, a transfer geared toward boosting the cost ecosystem.
The draft additionally covers the bodily point-of-sale actions of cost aggregators (PAs).
The RBI mentioned that 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 cost ecosystem.
The funds ecosystem in India contains on-line PAs and PAs, which facilitate face-to-face/proximity cost transactions.
On KYC and due diligence, the draft mentioned the cost 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 make sure that marketplaces onboarded by them don’t gather and settle funds for companies not provided via their platform,” mentioned the draft on which the RBI has invited feedback by Could 31, 2024.
For face-to-face/proximity cost transactions accomplished utilizing playing cards, from August 1, 2025, the draft mentioned no entity within the card transaction/cost 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 mentioned 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.
The online value of Rs 25 crore shall be maintained always thereafter.
(Apart from the headline, this story has not been edited by NDTV employees and is printed from a syndicated feed.)
