The Reserve Bank has increased strictness in the digital payment sector. RBI has issued new guidelines for 32 major payment aggregators including PhonePe, Paytm, Zomato, Amazon Pay, which have come into effect with immediate effect.
Now it has become mandatory for these companies to obtain a license and six important rules have been changed, which will have to be strictly followed. Strict action will be taken against companies for violating the rules, due to which their services may be stopped.
Classification of companies and rules
RBI has divided payment aggregators into three categories based on their functions – Physical Payment Aggregators (PA-P), Cross-Border Payment Aggregators (PA-CB) and Online Payment Aggregators (PA-O). Banks do not have to take separate permission for this business, but RBI has made strict rules for non-banking companies. This step has become very important in view of the rapidly growing trend of digital payments.
Licensing is mandatory, no service without license
RBI has made it mandatory for payment aggregators to obtain license to ensure financial stability and cyber security. Now no company will be able to provide payment service without license. In case of violation of rules, not only the company’s service can be stopped, but strict action can also be taken against it. This step has been taken to prevent online fraud and cyber crime.
Net worth and last date for application
Earlier, there was a minimum net worth rule of Rs 15 crore for payment aggregators, which had to be fulfilled by March 2021. Under the new rule, this limit has been increased to Rs 25 crore in the next three years. Companies will now be required to submit applications for the license by December 31, 2025. The deadline was extended several times, but now the final deadline has been clarified.
Strict compliance of the new rules is mandatory.
If the payment aggregator does not follow the new guidelines, its service will be stopped by February 28, 2026. Along with this, the limit of cross-border transactions has been limited to Rs 25 lakh. It will also be necessary to keep the money transferred for payment safe in an escrow account, so that the safety of the users’ funds can be ensured.
RBI’s strict stance in the world of digital payments
This new guideline has been issued at a time when the number of digital payments in India is increasing day by day and cases of online fraud are also increasing. RBI’s aim is to make digital transactions safe and reliable, so that the trust of customers remains intact and the financial system becomes strong.
