Rules Change: The RBI has implemented new rules to make digital payments safer. Payment aggregator companies like Paytm and PhonePe will now have to adhere to stricter guidelines. This will benefit customers with improved security, a transparent refund process, and fraud prevention.
The Reserve Bank of India (RBI) has implemented new rules for payment aggregators to make digital transactions secure and transparent. These rules take effect today and are aimed at reducing fraud and increasing customer trust.
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What are payment aggregators?
Payment aggregators are companies that accept payments from customers through various banks and then transmit the funds to the merchant.
For example, when you make an online payment using a credit card, debit card, or net banking, the process is completed through a payment aggregator. These companies act as a bridge between customers, banks, and merchants.
Why did RBI make new rules?
The rapid growth of digital payments has also led to an increase in cyber fraud and complaints. Keeping this in mind, the RBI has implemented new regulations. These regulations aim to:
- Making online transactions secure
- Better protection for customers
- Bringing transparency to payment aggregator companies
- Dispute Resolution Policy will now be mandatory
Dispute Resolution Policy will now be mandatory
All payment aggregators will now be required to develop a Dispute Resolution Policy, which will be approved by their company’s board. This policy will clearly state how and within what timeframe refunds will be processed, and what customer benefits will be available in the event of a dispute. This rule will strengthen customer trust and make the refund process transparent.
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Strict rules for new companies
- Companies that want to become payment aggregators must have a net worth of at least Rs 15 crore at the time of applying.
- After getting the license and 3 years of operation, this net worth will have to be increased to Rs 25 crore.
- Due to this, only financially strong and stable companies will be able to work in this sector.
- Non-banking companies need RBI approval
- Banks do not need separate permission from RBI to become payment aggregators but non-banking institutions will have to obtain a license from RBI.
- If a company is regulated by any other regulatory body like SEBI or IRDAI, then first they have to obtain NOC (No Objection Certificate) from their regulator and submit it to RBI within 45 days.
Only banks have the right to set transaction limits.
Under the new rules, payment aggregators will not be able to set transaction limits on their own. Only banks will determine the maximum amount that can be paid at a time.
What will be the benefits for customers?
- Confidence in digital payments will increase
- Decrease in fraud and disputes
- The refund process will be transparent and fast.
- Only strong and reliable companies will be able to operate in this sector
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