RBI Final Payment Aggregator Guidelines: Net Worth and Rules
Why in the news
RBI issued comprehensive final rules for Payment Aggregators, aiming at transparency, security and governance in digital payments.
Key facts
- Non-bank PAs must obtain RBI authorisation; the legal basis is the PSS Act of 2007.
- Net worth: ₹15 crore at the start; it must climb to ₹25 crore when year three ends.
- Banks offering PA services in their regular business are exempt.
Main requirements
| Area | Rule |
|---|---|
| Governance | Professional management; fit and proper promoters and directors |
| Reporting | Acquisition or management change reported to RBI in 15 days |
| Compliance | Nodal officer for regulation and grievances |
| Merchants | Agreements covering duties, disputes, refunds; background checks |
| Funds | Held in escrow at a scheduled commercial bank |
| Security | PCI-DSS; yearly audit by CERT-In empanelled auditors; incidents reported to RBI and CERT-In immediately |
| Customers | No card credentials stored; refunds to original mode unless agreed otherwise |
About PAs, PGs and escrow
- A Payment Aggregator collects customer money for merchants and forwards it after settlement; it holds no banking licence.
- An escrow account keeps funds with a neutral third party until the transaction’s conditions are satisfied.
- A Payment Gateway is a technology service linking customers, merchants and banks, treated as a technology provider.
Exam angle
- Governing law: Payment and Settlement Systems Act, 2007.
- Net worth path: ₹15 crore to ₹25 crore.