Clarification On The Guidelines On Regulation Of Payment Aggregators And Payment Gateways

1. INTRODUCTION

Vide the circular dated March 17, 2020, the Reserve Bank of India (the "RBI") had issued 'Guidelines on Regulation of Payment Aggregators and Payment Gateways" ("PA Guidelines"),¹ through which, the RBI had decided to (a) regulate in entirety, the activities of non-bank payment aggregators ("PAs"); and (b) provide baseline technology-related recommendations to payment gateways. To this extent, the baseline technology-related recommendations were mandatorily applicable to non-bank PAs. IndusLaw has provided an overview and analysis of the PA Guidelines in an earlier alert published on March 25, 2020. Through a notification dated March 31, 2021² ("Notification"), the RBI has made public certain clarifications on the PA Guidelines, issued by it on September 17, 2020, as set out below. All other provisions of the PA Guidelines remain unchanged.