PayU Gets Final RBI Payment Aggregator Authorisation
Why in the news
Prosus-backed PayU Payments Pvt. Ltd. got the RBI’s final nod to run as an online payment aggregator, over a year after in-principle approval.
Key facts
- A Payment Aggregator (PA) lets merchants accept UPI, cards, wallets, transfers and EMIs, holding money in a nodal account.
- Flow: merchant onboarding, tokenised checkout, issuing bank check, approval, funds to nodal account, then settlement (daily, same-day or instant).
- Licence needs INR 15 crore net worth by 31 March 2021 and INR 25 crore by 31 March 2023, plus proof of stability, experience and secure technology.
- Duties: clear merchant and customer agreements; handling of complaints, refunds, failed transactions and disputes.
| Basis | Payment Aggregator | Payment Gateway |
|---|---|---|
| Role | Funds and settlement | Encryption and routing |
| RBI licence | Needed for non-banks | Not needed |
| Merchant ID | PA provides its own | Merchant needs its own |
Types
- Bank PAs (HDFC, ICICI): no RBI registration; costlier, less suited to small firms.
- Third-party PAs (Razorpay, Mobikwik, Airpay): need RBI approval; cheaper, with analytics, APIs and sub-merchant onboarding.
Exam angle
- Governing law: Payment and Settlement Systems Act, 2007; PA account: nodal account.