RBI New Circular on Regulation of Payment Aggregator (PA)
| ➡️ Get instant news updates on Whatsapp. Click here to join our Whatsapp Group. |
The Reserve Bank of India (RBI) has released master circular on Regulation of Payment Aggregator (PA).
What is Payment Aggregator?
A Payment Aggregator (PA) is a company that allows businesses and merchants to accept online payments from customers without having to set up their own direct bank account with individual payment gateways.
The PA collects payments made through different methods such as debit cards, credit cards, UPI, net banking, or mobile wallets, and then settles the money into the merchant’s account after deducting charges. Since PAs handle public money, the Reserve Bank of India (RBI) regulates them to ensure safety and transparency.
They are required to obtain an RBI license, maintain a minimum net worth, and follow strict rules related to KYC, fraud prevention, customer grievance redressal, and data security.
Popular examples of Payment Aggregators in India include Razorpay, PayU, CCAvenue, Cashfree, and Instamojo. In simple terms, a Payment Aggregator acts as a middleman that makes it easier for businesses to collect payments from customers securely.
Click here to download RBI Circular
