Skip to content
Free updates Login
BankingNABARD / RBI

PayU Payments Gets RBI Final Approval as Payment Aggregator

19 May 20251 min read
BANKING & FINANCEPayU Payments GetsRBI Final Approval asPayment Aggregator19 May 2025safalsetu.com

Why in the news

The Reserve Bank of India has cleared PayU Payments Pvt. Ltd. to work as a Payment Aggregator (PA), a final step after meeting its regulatory standards.

Key facts

  • Authorisation: final approval from RBI as a Payment Aggregator.
  • Legal basis: Payment and Settlement Systems Act, 2007.
  • The approval shows PayU meets RBI’s strict norms, including:
    • merchant due diligence
    • maintaining escrow accounts
    • grievance redressal mechanisms
    • robust operational and governance structures

Background

  • Since 2020 RBI has required every digital payment intermediary to hold authorisation, to protect security, transparency and consumers.
  • More than 180 entities applied, yet only a handful have received final licences so far.

Exam angle

  • Regulator for payment aggregators: RBI.
  • Governing law: Payment and Settlement Systems Act, 2007.
  • Key safeguard: escrow account for merchant funds.

Test yourself

1. Under which Act did RBI authorise PayU Payments to operate as a Payment Aggregator?

The authorisation is under the Payment and Settlement Systems Act, 2007.

2. Which arrangement is among the norms PayU met to win RBI's final Payment Aggregator approval?

Merchant due diligence, escrow accounts and grievance redressal are among the norms.

3. Roughly how many entities had applied for Payment Aggregator authorisation, per the report on PayU?

Over 180 entities applied; only a few have received final licences.

This topic is part of Daily Current Affairs 18 & 19 May 2025 (20 topics).

All topics of the dayDay quizMay 2025

Read more