💳 RBI Tightens Oversight of Payment Aggregators: Key Highlights You Must Know

📅 July 2025 Update
The Reserve Bank of India (RBI) has announced tighter norms for Payment Aggregators (PAs) in a continued effort to strengthen digital payment infrastructure and protect consumer interests. This move aligns with RBI’s commitment to enhance transparency, reduce fraud risks, and streamline regulatory compliance.

🏦 What are Payment Aggregators?

Payment Aggregators are service providers that enable e-commerce sites and merchants to accept various payment instruments from customers without requiring a separate payment gateway or bank integration.

🔍 What Has RBI Changed?

Here’s a breakdown of the new regulations:

✅ Mandatory Certification

All PAs must obtain compulsory certification from auditors verifying compliance with RBI guidelines on security, data handling, and operational standards.

📑 Revised Eligibility Norms

• Net worth requirement raised to ₹25 crore for new applicants.
• Existing PAs must achieve this net worth by March 31, 2028.

🔐 Data Storage Compliance

• No card data storage allowed by PAs.
• Only tokens or transaction reference numbers permitted.
• PCI-DSS certification and regular security audits are now mandatory.

📉 Escrow Management

• More stringent controls over escrow accounts.
• PAs must report daily settlement status and ensure T+1 or T+2 cycle for fund transfers.

🔁 Third-Party Agreements Review

All third-party tech integrations must be reviewed and registered with RBI. This ensures that customer data and financial information are handled securely.

🧾 Impact on Fintech and Merchants

📌 For Fintech Startups
Increased compliance burden may lead to higher entry barriers, but will improve market credibility and consumer trust.

📌 For Merchants
Merchants can expect more secure and regulated payment gateways, reducing risks of failed or delayed settlements.

📌 For Consumers
Greater protection of card and personal data, leading to enhanced user confidence in online transactions.

🧭 RBI's Vision Behind These Moves

🔎 The tightening of norms is part of RBI’s larger strategy to:

• Curb financial fraud
• Strengthen digital transaction safety
• Increase accountability and transparency in digital payments

🏁 Conclusion

The RBI’s move to tighten oversight of Payment Aggregators is a proactive step toward building a secure, resilient, and trustworthy digital payment ecosystem in India. While the industry may face short-term operational challenges, the long-term benefits in terms of compliance, consumer trust, and sustainable growth are undeniable.

🔐 Compliance is no longer optional — it’s the foundation of digital trust.

Sales and Marketing Executive at TAXAJ

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