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Economy
Mahesh

17/02/23 12:31 PM IST

RBI grants payment aggregator licence to 32 entities

In News
  • The Reserve Bank of India (RBI) recently said it has granted in-principle approval to 32 existing online payment aggregators, allowing them to continue their operations.
  • Amazon (Pay) India Pvt Ltd, CAMS, Google India Digital Services Pvt Ltd, Reliance Payment Solutions Ltd and Zomato Payments Pvt Ltd are among the notable entities who have been granted in-principle approval to continue their operations.
Payment Aggregators
  • The payment aggregator acts as an intermediary. Say you are purchasing in a shopping mall, ABC shop.
  • You swipe your debit card or pay using the mobile app XYZ. Now XYZ collects money from your account and deposits it in the account of ABC shop. XYZ is the payment aggregator.
  • There are two different types of payment aggregators.
  • One is the third-party payment aggregator and bank payment aggregator.
  • RBI recently issued licenses to third-party aggregators.
Payment Aggregators and Payment Gateways
  • Payment Aggregators are entities that facilitate e-commerce sites and merchants to accept various payment methods from the customers for completion of their payment obligations without the need for merchants to create a separate payment integration system of their own. PAs facilitate merchants to connect with acquirers. They receive payments from customers, pool, and transfer them to the merchants after some time.
  • Payment Gateways are entities that provide technology infrastructure to route and facilitate the processing of an online payment transaction without any involvement in handling funds.
Source- Hindu Business Line

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