RBI Issues Draft Guidelines On Payment Aggregators

The payments ecosystem in India includes online PAs and PAs, which facilitate face-to-face/proximity payment transactions.

 The Reserve Bank on Tuesday came out with draft guidelines to further strengthen regulations on payment aggregators, a move aimed at boosting the payment ecosystem.

The draft also covers the physical point-of-sale activities of payment aggregators (PAs).

The RBI said that given the growth in digital transactions and the significant role that PAs play in this space, the current directions on PAs are proposed to be updated and cover, inter alia, KYC and due diligence of merchants, operations in Escrow accounts, and intended to strengthen the payment ecosystem.