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PhonePe Wins RBI Payment Aggregator Authorisation

20 September 20251 min read
BANKING & FINANCEPhonePe Wins RBIPaymentAggregatorAuthorisation20 September 2025safalsetu.com

Why in the news

The RBI gave PhonePe its final nod as a payment aggregator, so it can sign up merchants directly, especially SMEs.

PA basics

  • Merchants accept cards, UPI, wallets and net banking via one gateway.
  • Framework: PA/PG guidelines, March 2020; non-banks need RBI authorisation.
NormRequirement
Net worth at application₹15 crore
Net worth by year 3 end₹25 crore
GovernanceFit-and-proper test, escrow, grievance redressal

Significance

  • Serves SMEs; supports financial inclusion.
  • Rivals: Razorpay, PayU, Cashfree.

Exam angle

  • Regulator: RBI.
  • ₹15 crore rising to ₹25 crore.

Test yourself

1. What minimum net worth must a payment aggregator hold by the end of the third financial year?

It starts at ₹15 crore and rises to ₹25 crore.

2. In which month and year were RBI's PA/PG guidelines introduced, per the notes?

The framework was introduced in March 2020.

3. Which kind of merchants does PhonePe's PA licence especially help it onboard?

The approval helps it directly onboard SMEs.

This topic is part of Daily Current Affairs 19 September 2025 (11 topics).

All topics of the dayDay quizSeptember 2025

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