New Rules: Reserve Bank of India (RBI) has issued new rules for transactions, which will have to be followed. Know what this is.
The Reserve Bank of India (RBI) has issued rules to regulate entities providing payment and settlement facilities for online export or import transactions. According to the rules, all payment aggregators (PAs) which provide the facility to process domestic transactions in online mode will have to follow this circular.
This is the new rule
The central bank said in the regulation that keeping in mind the development in cross-border payments, all entities facilitating cross-border payment transactions for import and export of products and services will be required to comply with the RBI regulations. A decision has been taken to bring it under regulation (New Rules). Entities involved in international payment transactions or settlements for import and export of products and services must comply with these instructions. These also include Authorized Dealer (AD) Bank, PA and PA-CB.
Payment Aggregators
According to the payment gateway, it is very difficult to obtain a payment aggregator license. Payment gateways are companies that provide technology infrastructure for online monetary transactions. Although the Reserve Bank of India has given principal approval to many applicants, the final approval is pending for more than a year. RBI has also stopped some big companies, which have received principal approval for payment aggregator (PA) license, from adding new customers.
PAs are entities that enable e-commerce sites and merchants to accept payments from customers to fulfill their payment obligations. Merchants do not need to create their own system to take payments from customers. PAs take payments from customers, and then transfer them to merchants.
