RBI Unveils New Payment Aggregator Guidelines: Rs 25 Cr Net Worth Mandate, Cross-Border Limits & More Rules

The Reserve Bank of India (RBI) has issued fresh directions under its Regulation of Payment Aggregators Directions, 2025, which come into effect immediately. These new rules classify payment aggregators into three distinct categories: PA‑P for physical transactions, PA‑O for purely online operations, and PA‑CB for entities involved in cross‑border business.

RBI Rolls Out New Payment Aggregator Regulations

While banks are exempt from needing separate authorisation to act as payment aggregators, non‑bank entities must follow rigorous standards-including capital requirements and fund‑management norms.

Who Must Comply and Net Worth Conditions

For non‑bank organisations seeking authorisation, there are steep financial thresholds to clear. Initially, such entities must have a minimum net worth of Rs 15 crore at the time of application. This requirement increases to Rs 25 crore by the end of their third financial year of operation under the aggregator framework.

RBI's idea is to ensure these aggregators are financially stable and capable of handling liabilities and operational risk. The guidelines also enforce a "fit and proper" criteria for promoters and key management, so that the people steering these entities meet certain standards of integrity, competence, and reliability.

Escrow, Fund Management and Accountability

The rules extend well beyond just capital. The framework also details how aggregators must manage customer funds, including the use of escrow accounts to hold payments temporarily until obligations are met. Fund management must be transparent and secure, to protect users and foster trust in payment ecosystems. The RBI has laid down specific requirements to ensure protection of both merchants and end users, alongside frequent disclosures and audits to prevent misuse of funds.

Cross‑Border Aggregation Limits

Entities classified under PA‑CB-those handling cross‑border payment aggregator activities-will be subject to specific limits. These caps and controls are designed to manage risks associated with foreign transactions, such as currency exposure, regulatory compliance across jurisdictions, and potential money‑laundering concerns. With increasing global digitisation, these restrictions are thought to prevent undue risk while still encouraging international digital commerce.

What This Means for the Industry?

Digital payment and fintech firms that operate-or wish to operate-as aggregators will need to review their business models carefully. Non‑bank players must ensure their financials are in order to meet net worth obligations, set up compliant escrow and fund‑management systems, and map out how they will handle cross‑border operations within the new limits.

Meanwhile, banks may have fewer regulatory burdens in this space, given their exemption from specific authorisation under these directions. Overall, the new regulations are likely to increase consumer confidence, reduce systemic risk, and promote greater transparency in India's payments ecosystem.