Department/Board : RBI

Circular No. : DPSS.CO.PD.No.1810/02.14.008/2019-2020

Date : 17.03.2020

All Payment System Providers and System Participants

Madam / Sir,

Guidelines on Regulation of Payment Aggregators and Payment Gateways

This has reference to Reserve Bank of India (RBI) circular DPSS.CO.PD.No.1102/02.14.08/2009-10 dated November 24, 2009 on 'directions for opening and operation of accounts and settlement of payments for electronic payment transactions involving intermediaries'.

2. A reference is also invited to the discussion paper placed on the RBI website on guidelines for regulation of Payment Aggregators (PAs) and Payment Gateways (PGs). Based on the feedback received and taking into account the important functions of these intermediaries in the online payments space as also keeping in view their role vis-a-vis handling funds, it has been decided to (a) regulate in entirety the activities of PAs as per the guidelines in Annex 1, and (b) provide baseline technology-related recommendations to PGs as per Annex 2.

3. Detailed guidelines to this end are appended. It may be noted that these guidelines are issued under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007 and shall come into effect from April 1, 2020 other than for activities for which specific timelines are mentioned.

Yours faithfully,
(P. Vasudevan)
Chief General Manager