The Reserve Bank of India (RBI) is set to streamline the licensing process for payment aggregators by consolidating the requirements for both online and offline entities. K. Vijayakumar, General Manager of DPSS RBI, announced this shift during the Global Fintech Fest, emphasizing the regulator’s aim to issue a unified license for payment aggregators that would cover both online and offline operations.
Vijayakumar explained that as the distinction between physical and online spaces diminishes, a single license will allow payment aggregators to operate seamlessly across both domains. The regulator is also prioritizing the security of payment transactions, stressing that innovations by merchants and payment service providers must adhere to customer assurance and transaction authentication standards from the outset.
Additionally, Vijayakumar highlighted the RBI's efforts to integrate Aadhaar-enabled Payment Systems (AePS) with existing Point of Sale (POS) machines to boost financial inclusion in rural areas. This move aims to lower costs and increase transaction volume among merchants, particularly in areas with limited connectivity. He also mentioned plans to enable transactions without internet access, providing a solution for areas with poor network coverage or during outages.
The RBI, which stands for the Reserve Bank of India, is India's main regulatory body in charge of overseeing the country's banking system. It is under the ownership of the Ministry of Finance, Government of India, and is tasked with overseeing the control, issuance, and maintenance of the Indian rupee.
