The Reserve Bank of India (RBI) has made it compulsory for payment aggregators to obtain prior licences in order to operate. Introducing new rules for such entities, the banking regulator has mandated companies to must have a minimum net worth of Rs 25 crore within three years in order to qualify for payment regulator licences.
The new norms come at a time when digital transactions are growing rapidly in the country, with the central bank stepping up vigilance to ensure greater transparency, financial stability and security in the domestic banking and payments system.
Minimum net worth requirement raised to Rs 25 crore
This marks an increase of Rs 10 crore over the current threshold. Currently, the minimum requirement stands at Rs 15 crore.
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Those engaged in such businesses will have to submit their applications mandatorily by December 31, according to the RBI.
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Any violation in this regard will lead to closure by February 28, 2026.
Additionally, the central bank has set a limit of Rs 25 for cross-border transactions. In other words, inward and outward fund transfers using such platforms will be subject to a transaction limit of Rs 25 lakh, as per the new rules.
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Any transactions above this limit will be kept safely in escrow accounts, according to the regulator.
What has changed?
|
Area |
Existing rules |
New rules |
|
Licence Requirement |
New entrants had to obtain RBI authorisation Existing players could continue temporarily while applying |
Licence compulsory for all payment aggregator No operation without approval |
|
Net Worth Requirement |
Rs 15 crore minimum net worth This must be achieved by March 2021 and maintained |
Rs 15 crore minimum to start This must reach Rs 25 crore within 3 years |
|
Application Deadline |
Multiple extensions were given for existing players to apply (latest being Sep 2022 for some) |
Mandatory submission of applications by December 31 |
|
Non-Compliance |
Non-compliant entities risked rejection but often had grace periods |
Must shut down operations by February 28 if not compliant |
|
Cross-Border Transactions |
No clear upper limit defined by RBI |
Limit set at Rs 25 lakh per transaction |
|
Escrow Mechanism |
Escrow accounts required, but rules were less detailed |
Stricter enforcement Money must be kept safe in escrow |
|
Cybersecurity |
General IT security guidelines under RBI |
Annual cybersecurity audit compulsory |
Cybersecurity in the spotlight
The RBl has also made it compulsory for payment aggregators to undergo annual cybersecurity audits in order to protect user interests.
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