RBI to Roll Out Unified Licence for Online and Offline Payment Aggregators: What You Need to Know

The Reserve Bank of India (RBI) is set to simplify the licensing process for payment aggregators by merging the rules for online and offline businesses. K. Vijayakumar, General Manager of the RBI’s Department of Payment and Settlement Systems (DPSS), shared this news at the Global Fintech Fest.

Vijayakumar explained that the RBI wants to issue a single licence for payment aggregators that covers both online and offline activities. This change aims to remove the need for separate applications for each type of operation.

He noted that the lines between online and physical payments are increasingly blurred. By implementing a uniform licence, the RBI hopes to make it easier for payment aggregators to operate across both areas.

Security remains a top priority for the RBI. Vijayakumar emphasised that while innovation by merchants and payment service providers is encouraged, they must maintain strong customer security and transaction authentication from the start.

Vijayakumar also highlighted plans to integrate Aadhaar-enabled Payment Systems (AePS) with Point of Sale (POS) machines. This integration could help increase financial inclusion in rural areas by reducing costs and boosting merchant transactions. He also mentioned exploring ways to allow transactions without internet access, which could be useful in areas with poor connectivity or during network outages.