Definition
RBI Payment Aggregator Regulations are guidelines issued by the Reserve Bank of India to regulate payment aggregators, ensuring secure, reliable, and compliant digital payment processing for merchants and customers.
How this works
Payment aggregators must register with RBI and follow operational, security, settlement, and reporting requirements. This includes KYC verification, transaction monitoring, customer grievance handling, and timely settlements with merchants as per RBI norms.
Benefits
• Ensures secure and regulated payment processing
• Protects customer data and funds
• Defines operational and settlement standards
• Increases merchant and customer trust
• Facilitates transparency and compliance in digital payments
FAQs
Q1. Who must comply with RBI Payment Aggregator Regulations?
All payment aggregators operating in India must comply, including fintechs and merchant service providers.
Q2. Do these regulations cover customer data security?
Yes. Aggregators must follow strict data protection, encryption, and PCI DSS compliance requirements.
Q3. How does RBI ensure timely settlements?
Regulations specify settlement timelines, reconciliation processes, and reporting obligations for aggregators.
Q4. Are there penalties for non-compliance?
Yes. Non-compliant aggregators can face fines, license suspension, or revocation of authorization by RBI.