The Reserve Bank of India (“RBI”), in exercise of powers conferred under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007, and Section 10(4) and Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999, vide Notification No. RBI/DPSS/2025-26/141,[1] dated September 15, 2025, has issued a Master Direction on regulation of payment aggregator (“PA”).
Key Developments:
- Original Guidelines (2020-2021): On March 17, 2020, the RBI issued the ‘Guidelines on Regulation of Payment Aggregators and Payment Gateways’, vide Circular No. DPSS.CO.PD.No.1810/02.14.008/2019-20, which was followed by an additional circular on March 31, 2021, updating the same. These regulations addressed entities involved in online payment aggregation.
- Cross-Border Payment Aggregators: On October 31, 2023, the RBI issued a separate directive on the ‘Regulation of Payment Aggregators – Cross Border (PA – Cross Border)’, vide Circular No. CO.DPSS.POLC.No.S-786/02-14-008/2023-24, specifically focusing on cross-border payment aggregators.
- Draft Directions on Physical Point of Sale (“POS”): On April 16, 2024, the RBI published for public comment the following two key documents: (i) Draft Directions on Regulation of Payment Aggregators at POS; (ii) Proposed Amendments to the Existing Directions on Payment Aggregators. These draft directions aimed to bring greater clarity and standardization to the functioning of Payment Aggregators in physical POS environments.
Further, in response to the public comments received, and in line with its ongoing efforts to rationalize the regulatory framework, the RBI has issued this comprehensive Master Direction on Regulation of Payment Aggregators intending to regulate and standardize the operations of Payment Aggregators across various categories, including online and physical points of sale. The Master Direction can be accessed at https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12896&Mode=0
[1] https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12896&Mode=0