The Reserve Bank of India (RBI) has sought public comments on draft directions on the regulation of payment aggregators concerning physical point of sale and amendments to certain existing directions.
The central bank in September 2022 announced regulation of offline payment aggregators, who handle proximity or face-to-face payments. The new draft directions are aimed at covering the physical point-of-sale activities of aggregators.
Given the growth in digital transactions and the significant role that payment aggregators play in this space, directions are proposed to be updated to further strengthen the payment ecosystem.
Comments or feedback on the draft directions may be sent by email or by post to the Chief General Manager-in-Charge, Department of Payment and Settlement Systems, Reserve Bank of India, Central Office, 14th Floor, Shahid Bhagat Singh Marg, Mumbai-400001, on or before May 31, 2024.
The RBI proposed that non-banks providing payment aggregator point-of-sale services as of today shall have a minimum net worth of Rs 15 crore at the time of applying to the RBI for authorisation and a minimum net worth of Rs 25 crore by March 31, 2028. The net worth of Rs 25 crore shall be maintained at all times thereafter.
New non-banks (entities that have not commenced operations before the date of this circular) shall have a minimum net worth of Rs 15 crore at the time of applying to the RBI 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 net worth of Rs 25 crore shall be maintained at all times thereafter. If the entity is granted a Certificate of Authorisation on October 1, 2025, it shall achieve a net worth of Rs 25 crore by March 31, 2028.
All existing non-bank payment aggregator point-of-sale that are not able to comply with the net worth requirement or do not apply for authorisation within the stipulated time frame, shall wind up aggregating activity by July 31, 2025.
“Banks shall close accounts (used for PA activity) of non-bank PA-P (existing as on the date of this circular) by October 31, 2025, unless such PAs produce evidence regarding application for authorisation submitted to the RBI,” the central bank said.