ENA Sectors 2024-04-18 16:35:03 <p><span style="font-size:14px"><strong>Mumbai, Apr 18 (KNN)</strong> The Reserve Bank of India (RBI) has released draft guidelines aimed at better regulating payment aggregators operating in the country.</span></p> <p><span style="font-size:14px">The norms unveiled on Tuesday outline specific Know Your Customer (KYC) requirements that payment aggregators need to fulfil while onboarding small and medium merchants onto their platforms.</span></p> <p><span style="font-size:14px">Under the draft norms, payment aggregators will have to undertake contact point verification and duly verify the bank accounts of small merchants with an annual turnover below Rs 5 lakh who are not registered under the Goods and Services Tax (GST).</span></p> <p><span style="font-size:14px">For medium merchants, the guidelines mandate contact verification, verification of officially valid documents of proprietors/owners, and verification of the business itself by payment aggregators.</span></p> <p><span style="font-size:14px">The move to enforce stricter KYC processes for merchant onboarding comes after the RBI recently cracked down on major player Paytm Payments Bank for alleged KYC violations.</span></p> <p><span style="font-size:14px">Industry experts suggest the regulator is aiming to mitigate risks like money laundering by placing clear merchant due diligence norms.</span></p> <p><span style="font-size:14px">Aside from KYC regulations, a key aspect of the draft guidelines is allowing payment aggregators to use a single escrow account for fund settlement across both online and offline (face-to-face) transactions.</span></p> <p><span style="font-size:14px">Previously, separate escrow accounts were required for online and offline merchant fund pools.</span></p> <p><span style="font-size:14px">The RBI has also proposed minimum net worth requirements of Rs 15-25 crore for new and existing non-bank payment aggregators facilitating offline retail transactions.</span></p> <p><span style="font-size:14px">Existing players have welcomed the clarity provided by the regulator, although some anticipate the norms could drive consolidation in the payment aggregator industry.</span></p> <p><span style="font-size:14px">The draft guidelines have been opened for public feedback before being finalised and notified by the central bank in the coming months.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 37462 https://knnindia.co.in/news/newsdetails/sectors/rbi-unveils-draft-norms-for-payment-aggregators-to-streamline-merchant-kyc-operations 2024-04-18 16:35:03 knnindia.co.in