Delhi HC Upholds RBI's Guidelines For Payment Aggregators

This article analyzes the Delhi High Court's judgement upholding the RBI's Guidelines for Payment Aggregators. And contrasts it with previous judgements like the crypto banking ban case where courts have disagreed with the RBI.

The Delhi High Court has upheld the constitutionality of the RBI's Guidelines for Payment Aggregators (PA Guidelines) in a judgement released last month (PA Regulation Case). The Delhi High Court held that the Payment and Settlement Systems Act, 2007 (PSS Act) empowers the RBI to direct PAs to (1) obtain prior authorization, (2) have minimum net-worth, and (3) hold funds in escrow accounts.

Since the RBI's a specialized regulator, courts tend to defer to its wisdom. So, the Delhi High Court's decision in the PA Regulation Case isn't surprising. In the past, courts have rarely overruled the RBI. One notable exception is the Supreme Court's decision to strike down RBI's ban on access to banking services for the crypto-industry (Crypto