The Reserve Bank of India has issued regulations for payment aggregators providing physical point-of-sale services.
The new guidelines specify that banks currently providing physical PA services will continue without needing additional authorization but must ensure compliance with the updated instructions within three months. However, non-bank entities are required to seek authorization by May 31, 2025.
According to the circular, non-bank PAs must notify the RBI of their intent to continue operation within 60 days and submit their application by the 2025 deadline using Form A, which was detailed in a prior 2020 circular. These entities will be allowed to continue their operations temporarily until the RBI reviews and communicates the outcome of their applications.
Non-banks currently offering PA services must possess a net worth of at least Rs 15 crore at the time of application and are required to increase this to Rs 25 crore by March 31, 2028. This financial criterion aims to ensure that PAs have sufficient economic strength to manage risks and customer grievances effectively.
Further, existing non-bank PAs must align their operations with strict guidelines concerning governance, risk management, and customer relations within three months. Compliance with these standards will be considered during the application review process.
