Gives ‘In-Principle Authorisation’ to 32 existing PAs
Hey there! Have you heard the latest news in the world of finance? The Reserve Bank of India (RBI) has returned the applications of some of the most popular non-bank Payment Aggregators (PAs), including Freecharge Payment Technologies, PayTM Payments Services, and PayU Payments. This means that these companies have been put in time-out, but don’t worry – they can still apply again within 120 days.
So, what exactly are Payment Aggregators, you might ask? Well, they are kind of like the middlemen of online payments. They help e-commerce sites and merchants accept various payment methods from their customers, without the need for merchants to create their own payment integration system. It’s like having a personal assistant to handle all of your payments, while you can focus on other important things, like running your business or taking a nap.
However, the RBI has made it clear that they are keeping a close eye on these PAs. They have granted in-principle authorization to 32 existing PAs, but the applications of 18 others are still under process. In addition, the RBI has granted authorization to 19 new PAs, including Hitachi Payment Services and Zoho Payment Technologies, but they can’t start operating just yet.
And if that wasn’t enough, the RBI has also returned the applications of 17 existing PAs and 40 new PAs, including Ola Financial Services. This means that these PAs have been put on a bit of a timeout and need to stop online payment aggregation activity and close nodal/escrow accounts within 180 days.
So, what does this mean for all of us ordinary folks who just want to pay for our online purchases without any hassle? Well, the RBI is advising all stakeholders to transact only with existing PAs who have been granted in-principle authorization or whose applications are currently under process. As for new PAs, we’ll have to wait until they receive authorization under Section 7 of the PSS Act from the RBI.
In conclusion, it seems like the RBI is taking its role as a watchdog very seriously, making sure that all payment aggregators are playing by the rules. And while this news may seem a bit dry and technical, at least we can rest easy knowing that our online payments are in good hands, even if they are being watched like a hawk.