The Reserve Bank of India (RBI) has issued new guidelines for 32 payment aggregators, including PhonePe, Paytm, Zomato, and Amazon Pay. These guidelines have been implemented with immediate effect to regulate payment aggregators. Six major changes have been introduced, including making licenses mandatory. RBI has also warned that failure to comply with these rules will result in strict action against companies.
Companies Divided into 3 Categories
According to RBI, payment aggregators have been classified into three categories based on their operations:
- PA-P for physical payment aggregators
- PA-CB for cross-border payment aggregators
- PA-O for online payment aggregators
Banks do not require separate authorization for payment aggregator business, but non-banking companies must follow RBI’s rules. These guidelines come at a time when digital transactions in India are growing rapidly.
License Made Mandatory
RBI has made licenses compulsory for payment aggregators to ensure financial stability and strengthen cybersecurity. With the rise of online transactions, cases of cyber and online fraud have also increased. Now, no company can provide transaction services without a license. If the rules are violated, the company and its services will be shut down.
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Other Key Rules
- Earlier, the minimum net worth requirement for companies was ₹15 crore, which had to be achieved by March 2021. Now, companies must maintain a net worth of ₹15 crore initially and increase it to ₹25 crore within three years.
- The deadline for applying for licenses has been extended several times, but now all payment aggregators must submit their applications by 31st December.
- If the new rules are not followed, companies will not get any relaxation. Instead, their services will be suspended until 28th February 2026.
- Cross-border transactions will now be allowed only up to ₹25 lakh.
- All transferred funds must be kept safe in an escrow account.