**Summary:**
This Reserve Bank of India (RBI) circular (RBI/2022-23/94 CO.DPSS.POLC.No.S761/02.14.008/2022-23) dated July 28, 2022, addresses the regulation of Payment Aggregators (PAs) and provides a revised timeline for submission of authorization applications. It refers to earlier circulars DPSS.CO.PD.No.1810/02.14.008/2019-20 dated March 17, 2020, and CO.DPSS.POLC.No.S330/02.14.008/2020-2021 dated March 31, 2021, which outlined guidelines on the regulation of PAs and Payment Gateways.
The circular provides a one-time window for online non-bank PAs existing as of March 17, 2020, that did not previously meet the eligibility criteria, specifically the minimum net worth of ₹15 crore by March 31, 2021, to apply for authorization under the Payment and Settlement Systems Act, 2007 (PSS Act). These PAs can apply by September 30, 2022, provided they have a net worth of ₹15 crore as of March 31, 2022. These PAs will be allowed to continue operations until they receive communication from the RBI regarding their application status.
The timeline of March 31, 2023, for achieving the net worth of ₹25 crore remains unchanged. All other provisions of the previously mentioned circulars will continue to apply.
This directive is issued under Section 10(2) read with Section 18 of the PSS Act, 2007 (Act 51 of 2007).
For further information, contact P. Vasudevan, Chief General Manager, Department of Payment and Settlement Systems, Central Office, 14th Floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai – 400001. Tel: 91-22-2264 4995; Fax: 91-22-22691557; email: cgmdpsscorbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, the primary regulator mentioned in the context of payment systems.
Payment Aggregators: Entities that facilitate payments for merchants by aggregating various payment methods.
Payment and Settlement Systems Act, 2007: The governing law under which payment systems in India are regulated and authorized.
COVID-19: The global pandemic that caused disruptions and led to the extension of timelines for Payment Aggregators.
Mumbai, Maharashtra: The city in India where the central office of the Reserve Bank of India is located.
P. Vasudevan: Chief General Manager at Reserve Bank of India, signatory of the directive.
Payment System Providers: Entities that provide payment infrastructure and services.
Payment Gateways: Technology that facilitates payment processing for online transactions.
RBI/2022-23/94
CO.DPSS.POLC.No.S-761/02-14-008/2022-23 July 28, 2022
All Payment System Providers and Payment System Participants
Madam / Dear Sir,
Regulation of Payment Aggregators – Timeline for submission of applications for
authorisation – Review
Reference is invited to Reserve Bank of India (RBI) circulars DPSS.CO.PD.No.1810/02.14.008/
2019-20 dated March 17, 2020 and CO.DPSS.POLC.No.S33/02-14-008/2020-2021 dated March
31, 2021 on “Guidelines on Regulation of Payment Aggregators and Payment Gateways”. In
terms of these circulars, online non-bank Payment Aggregators (PAs) – existing as on March 17,
2020 – were required to apply to RBI by September 30, 2021i for seeking authorisation under the
Payment and Settlement Systems Act, 2007 (PSS Act).
2. It is observed that applications received from some PAs had to be returned as they had
not complied with eligibility criteria, including the minimum net worth criterion of ₹15 crore by
March 31, 2021. This also implied that they have to discontinue their operations within a period
of six months from the date of return of application. Though they have the option to apply afresh
on meeting the prescribed criteria, ceasing operations may lead to disruption in payment systems.
It is also possible that some PAs had not applied to RBI due to non-fulfilment of eligibility criteria.
3. Keeping in view the disruption caused by the COVID-19 pandemic, and to ensure smooth
functioning of the payments ecosystem, it has since been decided to allow another window to all
such PAs (existing as on March 17, 2020) to apply to RBI. They can apply by September 30, 2022
and shall have a net worth of ₹15 crore as on March 31, 2022. They shall be permitted to continue
their operations till they receive communication from RBI regarding the fate of their application.
The timeline of March 31, 2023 for achieving the net worth of ₹25 crore shall, however, remain.
भुगतान और िनपटान �णाली िवभाग, क��ीय कायार्लय, 14वी मंिजल, क��ीय कायार्लय भवन, शहीद भगत �संह मागर्, फोट,र् मम्ुबई - 400001
फोनTel: (91-22) 2264 4995; फैक् सFax: (91-22) 22691557; ई-मेलe-mail : cgmdpssco@rbi.org.in
Department of Payment and Settlement Systems, Central Office, 14th Floor, Central Office Building, Shahid Bhagat Singh Road,
Fort, Mumbai - 400001
�हदं ी आसान ह,ै इसका �योग बढ़ाइए4. All other provisions of the circulars referred to above, shall continue to be applicable.
5. This directive is issued under Section 10 (2) read with Section 18 of the PSS Act, 2007
(Act 51 of 2007).
Yours faithfully,
(P. Vasudevan)
Chief General Manager
i Earlier timeline was June 30, 2021; this was extended, vide RBI circular CO.DPSS.POLC.No.S-106 / 02-14-003 / 2021-
2022 dated May 21, 2021 on “Relaxation in timeline for compliance with various payment system requirements”.
2