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New Guidelines for Payment Aggregators
March 20 , 2020
1584 days
978
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- The RBI released new guidelines for payment aggregators (PA).
- Capital requirements for payment aggregators has been reduced to Rs 15 crore at the time of application for the licence.
- Pure-play payment gateway companies would be separated as an entity and would be identified as technology service providers for banks and non-banks.
- PAs have also been asked to adhere to strict security guidelines, adhere to all KYC (Know Your Customer) and AML (Anti Money Laundering) rules.
- The RBI has prohibited PAs from allowing online transactions to be done with ATM pin as the second factor of authentication, which few payment gateway companies were offering as a service.
Payment Aggregators
- These are players who integrate with e-commerce companies and connect them with banks.
- They receive payments on behalf of these companies and transfer the money to their accounts.
- Entities like Billdesk, CCAvenue, Firstdata, Razorpay, Cashfree, Paytm Payment Gateway and others are offering payment services to ecommerce companies.
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