RBI gives payment aggregators more time to apply for licenses; Must have accumulated total assets of Rs 25 crore by March 2023
New Delhi: To make it easier for payment aggregators (PAs) to apply for licenses, the Reserve Bank of India (RBI) on Thursday gave more time to PAs who have failed to meet minimum wealth norms required by authorities. His application was rejected.
These PAs, in place as of March 2020, can now apply for a license from the Central Bank until September 30, 2022. The Central Bank has stated that payment aggregators should have a minimum net worth of Rs 15 crore by March 31, 2022.
“In light of the disruptions caused by the COVID-19 pandemic and to ensure the smooth functioning of the payments ecosystem, all of these PAs (which existed on March 17, 2020) require another window to apply to RBI. It was decided to give permission. The RBI announced this in a press release on Thursday.
Minimum Asset Criteria
The aggregators can continue to operate until they receive information from the RBI on the fate of their application. However, the deadline of March 31, 2023 to acquire total assets of Rs 25 crore remains.
Recently, the Central Bank gave in-principle approval to the Bengaluru-based company Innovity Payments to act as a payment aggregator. Other payment providers such as Razorpay, Pine Labs, Stripe, 1Pay have also received RBI approval.
RBI guidelines state that payment aggregators should have a net worth of Rs 15 crore by March 2021, Rs 25 crore by March 2023 and must maintain a net worth of Rs 25 crore at all times thereafter.
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The Center found that applications received from some PAs had to be withdrawn as they failed to meet eligibility criteria, which included the minimum wealth criterion of Rs 15 crore as of 31 March 2021. This also meant that they had to close down their operations. A period of six months from the date of withdrawal of the application.
“Although they have the opportunity to re-apply if they meet the required criteria, the closure of operations may disrupt the payment system. It is also possible that some PAs did not apply to RBI due to not meeting the eligibility criteria.
Meanwhile, the RBI had issued guidelines in 2020 stating that only companies approved by the regulator can acquire and offer payment services to merchants. RBI received around 180 applications.