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February 8, 2019

RBI weighs option of regulating payment gateways

The Reserve Bank of India (RBI) is mulling the option to bring the country’s payment gateway operators and aggregators under its remit, reported Economic Times.

The central bank expects to publish a draft on this matter soon, which will be open for stakeholder consultations.

The aim is to address security concerns more effectively for payment gateways including Paytm, Mobikwik, Bharat Bill and aggregators such as BillDesk, PayU India, CCAvenue, and Razorpay.

In 2017, the central bank mandated intermediaries such as aggregators and payment gateways to route their transactions through a nodal account opened with a bank.

In this regard, RBI earlier said that all accounts maintained by banks that enable payment collection by intermediaries from customers of merchants will serve as the banks’ internal accounts.

In its “Payment and Settlement Systems – Vision 2018, RBI said: “The current guidelines on maintenance of nodal accounts for such intermediaries (monitored through banks) are indirect and address only a few specific aspects of their functioning.

“Given their increasing role, the guidelines will be revised for the payments related activities of these entities.”

Last year, RBI unveiled new guidelines to facilitate interoperability between various forms of prepaid payment instruments such as digital wallets.

The new rules enable digital wallets users to move fund between wallets.

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