In a major move which may dampen India’s burgeoning fintech opportunity, the Reserve Bank of India is bringing in tighter regulations for payment aggregators like Instamojo, PayU, Paytm etc.

A payment aggregator is an intermediary service provider that allows merchants to process payments made by customers digitally.

The new guidelines will be in place to treat all payment aggregators as regulated entities under the Payment and Settlement Systems Act (2007) under the Reserve Bank of India’s direct supervision.

The development coincides with the moratorium of YES Bank which had caused trouble for several digital payment companies, which had tie-ups with the bank.

The PCI noted that payments aggregators and gateways would work in a manner that’s similar to prepaid payment card issuers in terms of escrow A/c, security audits, and providing customer service. | To read full story, visit https://startuparound.com/read/1584594005.5225794/RBI-Wants-To-Regulate-Payment-Aggregators,-Increases-Compliances?ref=audio_experience