The Reserve Bank of India issues New Guidelines for Payment Aggregators

• 17 Sep 2025
• 379 Views

On 15 September 2025, the Reserve Bank of India (RBI) issued guidelines for regulating the payment aggregators in the country with immediate effect. Based on the work undertaken by payment aggregators, they are categorized into three categories, as per the Reserve Bank of India (Regulation of Payment Aggregators) Directions 2025.

These categories are: (i) PA-P for physical payment aggregators, (ii) PA-O for online PAs and (iii) PA-CB for cross-border payment aggregators. To carry out PA business, a bank doesn’t require authorization. For the non-banks, specific capital requirements have been set by the RBI.

Net Worth and Escrow Accounts

The RBI noted, “An entity seeking authorisation to commence or carry on PA business shall have a minimum net-worth of ₹15 crore at the time of tendering application for authorisation; and shall attain a minimum net-worth of ₹25 crore by the end of the third financial year of grant of authorisation." 

These requirements will ensure that only the players who are financially sound will operate in the ecosystem. As a result, the instances of fraud and regulatory issues will reduce in the system.

Under the new framework, detailed provisions are included regarding fund management and escrow account operations. This will ensure the customer funds remain protected. RBI has outlined specific limits and operational boundaries for the cross-border aggregators. 

Fit & Proper Criteria

For enhancing governance, all promoters are now mandated by the central bank to satisfy the fit and proper criteria. This is needed for ensuring ethical conduct and responsible ownership. The fit and proper criteria for promoters is mentioned in Chapter III of Master Direction on Regulation of Payment Aggregator (PA). We have provided this criteria below:

“The person has a record of fairness and integrity, including but not limited to:

1. financial integrity;

2. good reputation and character; and

3. honesty;

ii. Such person has not incurred any of the following disqualifications:

1. Convicted by a court for any offence involving moral turpitude or any economic offence or any offence under the laws administered by the RBI;

2. Adjudged insolvent and not discharged;

3. An order, restraining, prohibiting or debarring the person from accessing / dealing in any financial system, passed by any regulatory authority, and the period specified in the order has not elapsed;

4. Found to be of unsound mind by a court of competent jurisdiction and the finding is in force; and

5. Is financially not sound.”

The directions of RBI follow the draft guidelines that were issued last year in the month of April. These directions have come into effect after inputs from multiple stakeholders and indicate a collaborative policy approach. To know more about these directions, you can visit the official RBI website.

Sources: 

• Press Information Bureau

• Times Now News

• Reserve Bank of India website