RBI Relaxes Timelines For Payment System Compliances

Background

On 4 June 2020, the Reserve Bank of India (RBI) issued a notification (Notification) relaxing the timelines for certain compliances to be undertaken by banks, authorised payment system operators, and system participants. The RBI noted that the relaxations are being introduced in view of the present situation in the country.

In this update, we analyse the relaxations announced by the RBI under the Notification and its implications on the participants in the payments eco-system.

Key Relaxations

• Payment aggregators
• • On 17 March 2020, the RBI had issued guidelines to regulate the activities of payment aggregators and payment gateways (Aggregation Guidelines). The Aggregation Guidelines came into force on 1 April 2020 and introduced a licensing regime for payment service providers for providing payment aggregation services. Please refer to our analysis of the Aggregation Guidelines here.