Topics In Demand
Notification
New

No notification found.

Feedback to RBI on draft amendments related to Payment Aggregator Regulations
Feedback to RBI on draft amendments related to Payment Aggregator Regulations

June 4, 2024

80

0

We submitted feedback to Reserve Bank of India (RBI) on the: (1) draft regulation on Payment Aggregators – Physical Point of Sale (PA-P), and (2) draft clarifications to Guidelines on Regulation of Payment Aggregators and Payment Gateways (PA-PG Guidelines).

Our feedback was divided into 2 parts, and covered the following:

Part I: Concerns with the draft amendments to the PA-PG Guidelines with a view to minimising unintended consequences on legitimate business practices and adopting least burdensome measures that achieve the desired objective. We raised the following issues:

  1. The definition of PA-P and PA-O based on the time of delivery of goods/services, needs to be reviewed.
  2. The basis (i.e., annual turnover) of categorisation of merchants needs to be reviewed.
  3. PAs should be continued to be allowed to debit escrow account as per merchant’s instructions.
  4. Contact Point Verification of small and medium merchants should be reviewed. 

Part II: Need for clarifications under the draft amendments to PA-PG Guidelines and the draft PA-P regulation, to avoid ambiguity and enable effective compliance by the industry. This included, inter alia:

  1. Would PAs need to maintain escrow accounts for online and offline activity separately? Would PAs be allowed to operate 2 escrow accounts each for PA-P and PA-O business?
  2. How often should transaction activity be monitored to determine when a merchant should transition to a different CDD category? 
  3. How would a PA ensure that the processed transactions align with the merchant’s business profile?
  4. How should the requirement of displaying name of merhcant and PA be fuldilled in case the payment page is mantained by the merchant?

Our submission is attached below. 

For any information, please write to garima@nasscom.in with a copy to policy@nasscom.in.


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


Download Attachment

20240531-PAamendments-RBI-nasscom.pdf

images
Garima Prakash
Manager, Public Policy and Government Affairs

Reach out to me for all things policy about e-commerce, international trade, export controls, start-ups and fintech

© Copyright nasscom. All Rights Reserved.