PayU Receives RBI Approval to Operate as Integrated Payment Aggregator

PayU has received integrated authorisation from the Reserve Bank of India to operate as a payment aggregator across online, offline and cross-border categories. The approval comes under the Payment and Settlement Systems Act and expands the company’s regulatory scope across merchant payments.

Background And Regulatory Context

The Payment and Settlement Systems Act empowers the RBI to regulate entities handling payment processing, settlements and fund routing. Under the revised framework, payment aggregators are required to meet minimum net-worth standards, comply with governance norms and maintain strong security systems.

The RBI’s guidelines cover both online and offline operations as well as cross-border flows, making integrated approval significant for companies servicing broad merchant categories. Entities that secure this authorisation are permitted to onboard merchants, handle payment acceptance and facilitate settlement in line with regulatory standards.

Key Details of the Authorisation

With the integrated licence, PayU can now manage payment acceptance and settlement across digital and physical channels. This includes the ability to aggregate inward and outward cross-border transactions, a segment that requires enhanced compliance due to foreign exchange and risk-management protocols.

The approval extends across activities such as merchant onboarding, routing transactions and coordinating settlements. These functions fall under the RBI’s expectations for operational transparency, data protection and grievance-redressal mechanisms within the payment ecosystem.

A company spokesperson said the authorisation reinforces PayU’s operational scope across domestic and international transactions. The firm noted that the approval strengthens its ability to support merchants with unified payment services across touchpoints.

Impact On Business Operations

PayU currently provides digital payment infrastructure for businesses across sectors, supporting cards, UPI, net banking and other online payment methods. The integrated approval allows the company to continue onboarding merchants under a compliant framework while consolidating its position in the payment services industry.

By covering online, offline and cross-border categories, the licence enables seamless expansion within existing product lines, including multi-channel payment processing for enterprise and small-business clients. It also supports broader usage of unified payment interfaces that require adherence to RBI security and settlement norms.

Industry Relevance

The authorisation places PayU among regulated entities permitted to offer an integrated suite of payment aggregation services. As the digital payments landscape evolves, companies operating under aggregated licences are expected to maintain higher compliance, capital and risk-management standards.

The regulatory structure aims to ensure that payment intermediaries operate safely while supporting merchant growth across sectors. PayU’s approval signals continued alignment with the operational and governance requirements outlined in the RBI framework.

Read More: RBI Introduces Silver as Loan Collateral.

Conclusion

PayU’s RBI authorisation strengthens its presence in India’s regulated payment ecosystem and allows it to manage integrated online, offline and cross-border transactions. The clearance positions the company to continue supporting merchant payments within a unified and compliant operational structure.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.