RBI reduces capital requirement for payment aggregators to 15 crore

The capital requirements for payment aggregators have been reduced by the RBI to Rs 15 crore at the time of application for the licence from Rs 100 crore.

The RBI in its final regulatory note stated that applicants are required to have Rs. 15 crore of net worth that needs to be increased to Rs. 25 crore within three years of operations. “Existing non-bank entities offering payment aggregation (PA) services shall apply for authorisation on or before June 30, 2021,” RBI said.

“Good to see that entities handling funds of customers are only being proposed to be regulated unlike the original draft. Also, the net worth requirements are reduced and adequate time provided of one year to comply,” said Naveen Surya, Chairman, Fintech Convergence Council, an industry body for fintech companies.

“The capital requirements are not too high, most of these things were implemented by banks we work with anyway, these guidelines make it more transparent, one additional thing here is that merchants will not be able to store card details of customers,” said Harshil Mathur, Chief Executive Officer, Razorpay.