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ARTICLE · 26 APRIL 2024

Draft Directions - Changes In Regulatory Framework For Payment Aggregators (PAs)

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On April 16, 2024, the Reserve Bank of India (RBI) issued a press release with draft directions for regulation of payment aggregators (PAs) that facilitate payments at physical point of sale...

IndiaFinance and Banking
Rohan Bagai
Rohan Bagai
Arjun Uppal
Arjun Uppal
Prateek Pushkarna
Prateek Pushkarna
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On April 16, 2024, the Reserve Bank of India (RBI) issued a press release with draft directions for regulation of payment aggregators (PAs) that facilitate payments at physical point of sale (referred to as, PA-P), i.e., offline PAs. The proposed regulation is in addition to the existing regulatory framework applicable to PAs that facilitate payments at online points of sale (referred to as, PA-O), i.e., online PAs. PA-Ps are involved in facilitation of face-to-face / proximity payments at physical locations of the merchants, whereas PA-Os are involved in facilitation of payments for e-commerce transactions.

The draft directions (collectively, Draft Directions) have been prescribed in two parts, namely:

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