RBI Introduces New Guidelines to Regulate Payment Aggregators

The Reserve Bank of India (RBI) has brought in a fresh regulatory framework for payment aggregators, with immediate effect. The move, under the Reserve Bank of India (Regulation of Payment Aggregators) Directions, 2025, sets out new classifications, capital thresholds, and governance rules for the sector.

Classification and Authorisation Rules

Under the new regime, payment aggregators will be categorised into 3 groups depending on the type of activity they carry out: PA-P for physical operations, PA-CB for cross-border activity, and PA-O for online transactions. While banks can continue to provide aggregator services without requiring separate authorisation, non-bank entities must now meet capital benchmarks. 

As per news reports, the RBI specified: “An entity seeking authorisation to commence or carry on PA business shall have a minimum net-worth of ₹15 crore at the time of tendering application for authorisation; and shall attain a minimum net-worth of ₹25 crore by the end of the third financial year of grant of authorisation.”

Operational Provisions and Governance Norms

The directions also lay down rules on escrow accounts and fund management to ensure secure handling of customer payments. For cross-border aggregators (PA-CBs), specific transaction limits will apply. Governance standards have also been tightened, with promoters required to meet the central bank’s ‘fit and proper’ criteria.

Background and Rollout 

The guidelines follow a period of consultation, with draft directions first circulated in April 2024. After considering feedback from stakeholders, the central bank has now finalised the rules. By codifying these requirements, the RBI aims to strengthen oversight of the aggregator ecosystem while balancing innovation and security in digital payments.

Read More: RBI Slaps ₹21 Lakh Fine on PhonePe for PPI Rule Violations!

Conclusion

With these directions taking immediate effect, payment aggregators face a new era of regulation that prioritises capital adequacy, transparency, and strong governance. The framework signals the central bank’s intention to foster trust and resilience in India’s fast-growing payments ecosystem.

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