Business Standard

RBI comes up with draft guidelines on payment aggregators


The Reserve Bank of India (RBI) has come out with draft guidelines for payment aggregators (PA). The central bank noted it will enable the PA to manage risks on their platform with well-defined Know Your Customer (KYC) norms for merchants. In the draft guidelines published Tuesday, the RBI outlined KYC procedures for small and medium-sized merchants. A PA will need to undertake Contact Point Verification (CPV) and duly verify the bank account in which the funds of small merchants are settled. RBI highlighted the expansions in digital transactions and the significant role that PAs play in this space. It noted that the current directions on PAs are proposed to be updated and cover, inter alia, KYC and due diligence of merchants, operations in Escrow accounts, and intended to strengthen the payment ecosystem.
Powered by Capital Market - Live News

Disclaimer: No Business Standard Journalist was involved in creation of this content

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Apr 18 2024 | 11:54 AM IST

Explore News