RBI’s draft rules for payment aggregators may impact business models
The Reserve Bank of India’s new draft regulations for payment aggregators (PA) if implemented in its entirety could impact the business models of fintechs and Point of Sale (PoS) operators, which will now come under the regulations. As per RBI proposal, regulations for payment aggregators, which handle physical PoS services, will include minimum net worth requirements and a timeline for compliance.
The RBI also said that banks which provide physical payment aggregator services must ensure that they comply with regulations within three months — by July 16. The non-bank entities providing physical payment aggregator services must inform the RBI of their intent to seek authorisation within 60 days. The RBI said that non-bank entities offering physical PA services and looking to apply for licences must have a minimum net worth of Rs. 15 crore at the time of submission of their application to the central bank. And by March 31, 2028, non-banks already offering these services must have a minimum net worth of Rs. 25 crore and then maintain a net worth of Rs. 25 crore at all times. Those who may not be able to comply with the net worth requirements ought to wind up their physical payment aggregator services by July 31, 2025.
Comments / feedback on the draft directions may be submitted by May 31, 2024.
