Thursday, August 11 2022

On July 28, the Reserve Bank of India (RBI) opened a second opportunity for payment aggregators (PAs) whose authorization applications had been denied because they did not meet minimum net worth requirements.

It has since been agreed to provide all such PAs (existing as of March 17, 2020) with another window to apply for RBI. “Bearing in mind the disruptions created by the COVID-19 outbreak, and to ensure the seamless functioning of the payments ecosystem,” the central bank said.

PAs must have a net worth of Rs15 crore as of March 31 to be eligible to apply by September 30. They will be able to carry on business as usual until they hear from the RBI on the outcome of their application. The March 31, 2023 deadline will still be used to achieve a net worth of Rs25 crore, according to the RBI.

The original application deadline was September 30, 2021. The regulator noted that applications from several APs had to be returned because they did not meet the eligibility requirements, including the minimum net worth requirement. of Rs15 crore by March 31, 2021.

By taking payment instruments from customers, a payment aggregator provides payment facilities to merchants and e-commerce sites. They combine the money they receive from customers through the process and release it to merchants after a set amount of time.

On the other hand, payment gateways only offer organizations technology services for transaction processing. They are in no way involved in the management of the funds.

All APs must be approved by the central bank, according to a new set of rules published by the RBI in March 2020. To do this, the regulator has asked non-bank companies that provide AP services to submit applications for APs. authorization before June 30. , 2021; this deadline was finally pushed back to September 30, 2021.

After consideration of all applications, it was decided to grant the license. All payment gateways, including Razorpay, CCAvenue, Stripe, BillDesk, PayU and Cashfree, were required by the rules to obtain a license to operate. The few companies that have been allowed to act as payment aggregators in India would report directly to the RBI.

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