New Delhi: The Reserve Bank of India (RBI) has instructed payment aggregators to intensify their checks on merchants they bring on board. This aligns with RBI’s regulations that aim to oversee the payment ecosystem. Starting three months from the issuance of the circular, aggregators have to follow Know Your Customer (KYC) rules and thoroughly screen all merchants by September 30, 2025.
As per the RBI’s instruction, payment aggregators have to continually watch over merchants’ transaction activities. Merchants with certain transaction patterns will undergo more thorough checks, known as Customer Due Diligence (CDD), requiring additional inspection from payment aggregators.
Non-bank payment aggregators have to register with the Financial Intelligence Unit-India (FIU-IND) and provide the information requested by the unit.
The RBI has also laid out new financial requirements for Payment Aggregators who are operating physical Point of Sale (PA-P) services. Non-bank entities providing these services are required to have a net worth of at least Rs 15 crore during the time of authorisation, increasing to Rs 25 crore by March 31, 2028, and maintained thereafter.
Non-bank entities providing such services are required to maintain a minimum net worth of Rs 15 crore at the time of authorisation, rising to Rs 25 crore by March 31, 2028. “The net-worth of ₹25 crore shall be maintained at all times thereafter,” the bank informed.
Failure to meet the financial requirements or failure to apply for authorisation on time will lead the RBI to instruct non-bank PA-P entities to stop operations by July 31, 2025. Banks have to close accounts linked to these entities by October 31, 2025, unless proof of authorisation application submission is provided.
