Reserve Bank of India issues payment repository guidelines, licenses are now mandatory
The Reserve Bank of India (RBI) enables payment remitters to obtain a previous permission to operate. Bank regulators introduce new rules for such entities, requiring companies to have a minimum net worth of Rs 25 crore within three years in order to qualify for a license from the payment regulator.
The new norms are at a time when digital transactions in the country are growing rapidly, with central banks increasing their vigilance to ensure higher transparency, financial stability and security in domestic banks and payment systems.
Minimum net worth requirements increased to Rs 25 crore
This marks a 10 crore increase from the current threshold. Currently, the minimum requirement is Rs 15 crore.
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According to the Reserve Bank of India (RBI), those engaged in such business will have to submit their application by December 31.
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A summary guide to payments issued by the Reserve Bank of India | What happens if the new norms are not followed?
Any violations in this regard will be closed by February 28, 2026.
In addition, the central bank has set a limit of Rs 25 for cross-border transactions. In other words, internal and external fund transfers using such platforms will be subject to a transaction limit of Rs 2.5 lakh under the new rules.
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New RBI Payment Summary Rules | What happens if the transaction is larger?
According to regulators, any transaction above this limit will be kept safely in a escrow account.
What has changed?
|
area |
Existing rules |
New rules |
|
License Requirements |
New entrants must obtain RBI authorization Existing players can temporarily continue when applying |
Mandatory license for all payment aggregators No operation without approval |
|
Net asset requirements |
Minimum net worth of Rs 15 crore This must be achieved and maintained by March 2021 |
The start of the lowest Rs 15 crore This must reach Rs 25 crore in 3 years |
|
Application deadline |
Multiple extensions are provided for existing players (the latest is September 2022, some people) |
Mandatory application submission by December 31 |
|
Non-compliant |
Non-compliant entity risk rejection, but often with grace periods |
If incompatible, the operation must be closed by February 28 |
|
Cross-border transactions |
No obvious upper limit for RBI definition |
The limit for each transaction is set to Rs 2.5 lakh |
|
Hosting mechanism |
A hosting account is required, but the rules are not very detailed |
Stricter law enforcement Money must be kept safe in custody |
|
Cybersecurity |
General IT Security Guide under RBI |
Annual Cybersecurity Audit Mandatory |
Spotlight cybersecurity
RBL also enables payment aggregators to conduct annual cybersecurity audits to protect user interests.
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