RBI Issues New Rules For Payment Aggregators And Banks

Circular no. RBI/DPSS/2025-26/141 CO.DPSS.POLC.No.S-633/02-14-008/2025-26; Dated: 15.09.2025

1. Introduction

The Reserve Bank of India (RBI) has issued fresh directions on the Regulation of Payment Aggregators (PAs). The guidelines are designed to strengthen the governance, transparency, and security of entities operating in the payment ecosystem. By doing so, RBI aims to safeguard customer interests and promote the orderly growth of the digital payments sector.

2. Scope Of Applicability

The directions apply to all bank and non-bank entities engaged in the business of payment aggregation. They also extend to Authorised Dealer (AD) banks and Scheduled Commercial Banks (SCBs) that partner with or provide services to such entities. This wide applicability ensures a uniform regulatory framework across the payments industry.

3. Key Compliance Requirements

The framework specifies detailed requirements covering authorisation and capital norms, operational conduct of PA business, KYC and due diligence standards, and the use of escrow accounts. These measures are intended to ensure financial soundness, mitigate risks of fraud, and establish robust checks for customer data and transaction handling.

4.Escrow Account And Operational Directions

A major focus of the directions is on the management of escrow accounts by payment aggregators. The RBI has laid down specific rules on the operation of such accounts, ensuring that customer funds are protected and settlement obligations are met promptly. Additionally, general directions have been prescribed to maintain transparency and accountability in fund flows.

5. Conclusion

The directions have been made effective immediately, requiring prompt compliance from all concerned entities. By setting clear standards for the regulation of Payment Aggregators, RBI seeks to enhance trust in digital payments, encourage innovation in the sector, and ensure that consumer protection remains at the core of India’s payment ecosystem.

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