The Reserve Bank of India (RBI) on Wednesday granted in-principle authorisation to 32 payment aggregators under the Payment and Settlement Systems (PSS) Act, 2007. RBI had earlier issued circulars on March 17, 2020, and March 31, 2021, on “Guidelines on Regulation of Payment Aggregators and Payment Gateways”.
Online non-bank Payment Aggregators (PAs) – existing as on March 17, 2020 – were required to apply to RBI by September 30, 2021, for seeking authorisation under the Payment and Settlement Systems Act, 2007. Another extension was allowed to all such PAs to submit their application by September 30, 2022.
On Wednesday, RBI published the list of entities who submitted applications seeking authorisation to act as online payment aggregators with the current status of their application as on February 15, 2023.
According to the list, Amazon (Pay) India Pvt Ltd, Google India Digital Services Pvt Ltd, Infibeam Avenues Ltd, Reliance Payment Solutions Ltd, Zomato Payments Pvt Ltd, among others have been granted in-principle authorisation.
Applications are under process for an additional 18 existing payment aggregators, the RBI said.
RBI returned the application of four entities, including Freecharge Payment Technologies Private Limited, PayTM Payments Services Limited, PayU Payments Private Limited, and Tapits Technologies Private Limited.
Also Read: Paytm Payments Bank Goes Live With UPI LITE To Boost Small-Value UPI Transactions
RBI said, “All stakeholders are advised to transact with only those existing PAs (Payment Aggregators) who have been granted in-principle authorisation or (b) whose application is currently under process. Stakeholders may transact with new PAs only after these entities have received ‘authorisation’2 under Section 7 of the PSS Act from the Reserve Bank of India.”
“For the purpose of ‘authorisation’, the entity shall have to submit to RBI a System Audit Report (SAR) along with certificate from a Chartered Accountant regarding compliance with the net worth requirement,” the RBI said.
PAs are entities that facilitate e-commerce sites and merchants to accept various payment instruments from customers. They facilitate merchants to connect with acquirers. In the process, they receive payments from customers, pool and transfer them on to the merchants after a time period.
The entities also have to comply with other requirements under the guidelines and fulfill additional conditions stipulated by RBI, the central bank added.
(With PTI inputs)