Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
The Reserve Bank of India (RBI) has recently announced that regulations for offline payment aggregators will be brought at par with online peers. This move is aimed at ensuring the safety and security of customers who use offline payment methods. The RBI has recognized the need for a level playing field between offline and online payment aggregators to ensure that customers are protected regardless of the payment method they use.
Payment Aggregators are intermediaries that facilitate payments between merchants and customers. They enable the merchant to accept payments through various modes such as credit/debit cards, net banking, e-wallets, UPI, etc. Payment aggregators charge a fee for their services, which is typically a percentage of the transaction value.
The RBI has put in place a regulatory framework for payment aggregators to ensure the safety and security of customer transactions. Online payment aggregators are subject to stringent regulations, including mandatory registration with the RBI, adherence to KYC norms, transaction limits, and reporting requirements. Offline payment aggregators, however, have not been subject to the same level of regulation.
Offline payment aggregators have faced challenges in complying with the regulatory framework applicable to online payment aggregators. One of the key challenges is the lack of standardized processes and procedures for offline payments. The absence of a common platform for offline payments has made it difficult to implement KYC norms and transaction limits.
The challenges in implementing the regulatory framework for offline payment aggregators are:
The RBI’s move to bring parity between offline and online payment aggregators is a positive step towards ensuring the safety and security of customer transactions. The move will promote the growth of offline payments and provide a level playing field for offline payment aggregators. However, it is important to ensure that the regulatory framework is designed to meet the specific needs of offline payment aggregators and does not impose unnecessary compliance costs.
Also Read:What is Payment Aggregator?How do Payment Aggregator Platforms Work?Extension of timeline for non-bank Payment Aggregators: RBI Notification
Are your GAIL India Limited shares now eligible for transfer to the IEPF Authority, or have the...
India's financial sector is changing due to advancements in technology and new regulations. GIF...
The Indian startup ecosystem, which is the third-largest in the world, is expected to become a...
India's startup ecosystem has recently experienced a rapid rise as a global powerhouse. Several...
In the Union Budget 2024, Finance Minister Nirmala Sitharaman announced several changes to the...
Are you human?: 1 + 1 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
The RBI vide circular RBI/2019-20/186 on 27th March 2020 announced specific regulatory measures in order to allevia...
11 Nov, 2020
Recently, the Reserve Bank of India came up with a modified framework for Financial Market Infrastructure and Retai...
22 Jul, 2020