The Reserve Bank of India (RBI) has officially introduced a new regulatory framework governing payment aggregators (PAs), effective from Monday, September
15. As per the "Regulation of Payment Aggregators Directions, 2025", the central bank has introduced a classification system for entities based on the nature of their operations, according to a directive issued on Monday. These new regulatory frameworks include: PA-P for physical payment aggregators, PA-O for online PAs, and PA-CB for cross-border payment aggregators. This structured approach is aimed at improving oversight and ensuring a safer digital payment environment. Banks Exempt, But Capital Threshold Set For Non-Banks The RBI has clarified that banks engaging in payment aggregation do not need separate authorisation to operate as PAs from September 15 on wards. However, non-bank entities must meet specific financial criteria to be eligible. "An entity seeking authorisation to commence or carry on PA business shall have a minimum net-worth of Rs 15 crore at the time of tendering application for authorisation; and shall attain a minimum net-worth of Rs 25 crore by the end of the third financial year of grant of authorisation," the Reserve Bank of India noted. These requirements are designed to ensure that only financially sound players operate in the ecosystem, making it less likely to have fraud or regulatory issues in the system. Governance, Escrow Rules, And Cross-Border Limits Tightened The new framework also includes detailed provisions on fund management and escrow account operations to ensure that customer funds are protected. For cross-border aggregators (PA-CB), RBI has outlined specific limits and operational boundaries. In terms of governance, the RBI now mandates that all promoters must satisfy the ‘fit and proper’ criteria, reinforcing the need for responsible ownership and ethical conduct. The directions follow the draft guidelines issued in April 2024 and incorporate inputs from multiple stakeholders, indicating a collaborative policy approach.
