SDG 9: Industry, Innovation & Infrastructure
Institution: Reserve Bank of India | Ministry of Finance
The Reserve Bank of India has issued a comprehensive Master Direction on the Regulation of Payment Aggregators (PAs), effective September 15, 2025RBI. This consolidates and supersedes earlier circulars from 2009, 2010, 2013, 2015, 2020, 2021, and 2023. The new framework classifies PAs into Online, Physical Point-of-Sale, and Cross-Border categories. Non-bank PAs are now required to hold a minimum net worth of ₹15 crore at application and ₹25 crore within three years, with mandatory RBI authorisation.
The directions lay out rules on merchant due diligence, escrow account maintenance, governance standards, dispute resolution, fraud prevention, and cyber security. Cross-border PAs face a ₹25 lakh per transaction cap, separate inward and outward accounts, and strict FEMA compliance. The framework also mandates system audits, merchant KYC, and quarterly reporting to RBI.
This Master Direction is significant as it creates a unified regulatory architecture for India’s payment aggregation sector, which underpins e-commerce, digital financial inclusion, and cross-border trade. It strengthens systemic safeguards, raises entry standards, and ensures tighter oversight of fintech intermediaries. The move signals RBI’s intent to balance innovation with stability in India’s fast-expanding digital payments ecosystem.
Relevant Question for Policy Stakeholders:
How will the enhanced capital, compliance, and cross-border rules reshape the competitiveness and consolidation of India’s digital payments sector?
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https://rbidocs.rbi.org.in/rdocs/notification/PDFs/141MD7D7F25DEBF1F48449E20D685E4B014E5.PDF