On Wednesday, the Reserve Bank of India (RBI) gave preliminary authorisation to up to 32 entities to function as online payment aggregators (PA). Amazon (Pay) India, Google India, and Pine Labs are just a few of the companies that made in the list. The RBI has given in-principle authorization to 19 other firms in addition to these apps that were already payment aggregators. JusPay, Zoho Payment Technologies, Mswipe, and Tata Payments Limited are among those mentioned.
In order to request authorization under the Payment and Settlement Systems Act, 2007, current non-banking PAs as of March 17, 2020, were required to submit an application for a payment aggregator licence with the RBI by September 30, 2021. (PSS Act). The COVID-19 epidemic created a lot of inconvenience; thus, RBI prolonged the deadline to September 30, 2022.
A list of current PAs whose licence applications are being considered was also provided by the central bank. These entities include, among others, Bhartipay Services, Instamojo Technologies, and PhonePe. Freecharge, Paytm, PayU, and Tapits’ licencing application was rejected, although they still have 120 days to resubmit it. The RBI regulations, however, prevent them from operating until further notice.
In addition, RBI stated that up to 17 companies (current PAs) and 35 new PAs had their applications pulled or returned, and they were urged to stop aggregating payments online and close their nodal/escrow accounts 180 days after the date of the application’s return. Ezetap, Flexmoney, Ola Financial Services, Rupifi, and more names are among those on this list.
With the help of these licences, the RBI hopes to regulate online payment aggregation across the nation.
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