RBI proposes changes in net-worth guidelines for payment aggregators

The banking regulator has identified two major types of payment aggregators (PAs) as part of the payments ecosystem in the country

The Reserve Bank of India (RBI) today proposed the net-worth norms for payment aggregators (PAs) which facilitate face-to-face or proximity payment transactions. Those entities which are providing services now need to have a minimum net worth of Rs 15 crore while applying to the RBI for authorisation. They should have a minimum net worth of Rs 25 crore by March 2028, according to draft norms.

The entities currently carrying out this activity should ensure adherence to the guidelines on governance, merchant on-boarding, customer grievance redressal, fraud prevention, and risk management within three months from the date of the circular. The RBI will specify the date for the circular after finalising norms based on feedback to draft norms.

The RBI has also issued draft amendments to the existing directions on Payment Aggregators covering Know Your Customer (KYC) norms, due diligence, and monitoring of merchants, operations in escrow accounts, among others, intended to further strengthen the payment ecosystem.

The banking regulator has identified two major types of PAs as part of the payments ecosystem in the country. This includes PA-Online Point of Sale (PA-O) and PAs facilitating face-to-face or proximity payment transactions now known as PA - Physical Point of Sale (PA-P).

New non-bank PA-Ps will be required to have a minimum net worth of Rs 15 crore at the time of application to the RBI for authorisation. They will be required to attain a minimum net worth of Rs 25 crore by the end of the third financial year of grant of authorisation and maintained at all times thereafter.

“Illustratively, if the entity is granted a Certificate of Authorisation on 1 October 2025, it shall achieve a net worth of Rs 25 crore by 31 March 2028,” the RBI said. Existing non-bank PA-P which are not able to comply with the net-worth requirement or do not apply for authorisation within the stipulated time frame, shall wind up PA-P activity by 31 July 2025, the banking regulator said.

Banks will be required to close accounts that are used for PA activity of non-bank PA-Ps by 31 October 2025 unless such PAs produce evidence regarding the application for authorisation submitted to the RBI.