RBI Payment Aggregator License in India (2025 Guidelines): Here’s What the New RBI Rules Mean for You.

If you're planning to apply for a new payment aggregator license in India — whether for online payments, cross-border settlements, or merchant collections — the RBI's new Master Directions issued on 15 September 2025 change the compliance landscape completely.

This article will answer the questions most investors, fintech founders, and foreign companies ask before entering India's PA space, as well as the new RBI requirements, eligibility, net worth rules, and step-by-step process for obtaining a Payment Aggregator Authorisation in India.

1. Who do these regulations apply to?

• All non-bank entities acting as Payment Aggregators.
• Banks operating PA business.
• Fintech platforms collecting payments on behalf of merchants.
• Cross-border settlement platforms.
• Marketplaces accepting customer payments.

If you are not a bank, you must obtain RBI authorisation before starting business in India.

2. What is a Payment Aggregator according to RBI?

A Payment Aggregator is a company that collects customer payments on behalf of merchants through online or physical channels and then settles funds to the merchant.

The RBI now recognizes three PA categories:

3. Do I need a license from RBI?

YES. Any non-bank Payment Aggregator must obtain a Certificate of Authorisation from the RBI.

You must apply at least 30 days before starting business — operating without authorisation is a violation under the Payment & Settlement Systems Act.

4. What are the new capital requirements?

A statutory auditor certificate confirming net worth is mandatory with the application.

5. What are the eligibility & fit-and-proper criteria for promoters/directors?

RBI will only approve entities where promoters/directors have:

• Clean financial & legal track record
• No history of conviction or insolvency
• Sound reputation, integrity & competence
• Ability to operate a regulated fintech business

A director declaration & KYCmust be filed with RBI → only after acceptance, the application is published for public comments.

6. What compliance systems must a Payment Aggregator have?

• Merchant KYC & due diligence.
• Grievance redressal officer + escalation matrix.
• Annual cybersecurity & systems audit.
• Information security policy approved by the board.
• Transaction monitoring & fraud prevention tools.
• FIU-IND registration for AML reporting.
• Separate escrow accounts for merchant funds.

7. Key Rules for Payment Aggregator – Cross Border (PA-CB)

8. What are the escrow/settlement rules?

These rules directly affect companies applying for a Payment Aggregator license and operating merchant settlements.

• Merchant funds must be held in a dedicated escrow account.
• Cannot mix PA operating money with merchant money.
• Cross-border transactions require 2 separate escrow accounts.
• Deadline to migrate to new escrow rules: 31 Dec 2025.

Quarterly & annual certificates from banks & auditors must be filed with the RBI.

9. What are the ongoing reporting requirements?

Why This Matters to New PA Applicants?

• RBI is now approving fewer licenses and rejecting incomplete applications.
• Entities without end-to-end compliance frameworks will not be allowed to operate.
• Capital, governance, cyber, KYC, escrow must be ready before applying.

If you intend to launch a PA in India, you now need a full-stack regulatory plan, not just incorporation.

How KDP Accountants Help PA Applicants?

We assist Indian and foreign fintech founders with:

• Structuring the PA entity (Indian company / JV / subsidiary).
• RBI application drafting, filing & follow-up.
• Capital & net-worth planning + auditor certification.
• Promoter FIT & PROPER documentation.
• Escrow & merchant settlement frameworks.
• Information security & cyber audit readiness.
• Cross-border PA model structuring (PA-CB licence).
• Post-license compliance calendar & reporting.

End-to-end handholding until RBI approval — not just advisory.

Want to Apply for a Payment Aggregator License in India?

If you are planning to enter the Indian payments ecosystem as a Payment Aggregator or Cross-Border PA, our team can help you:

• Check your eligibility.
• Design the right corporate structure.
• Prepare the RBI application file.
• Complete technical + compliance documentation.
• Avoid common rejection triggers.

Conclusion:

The new RBI guidelines have made it clear that obtaining a Payment Aggregator License in India requires strong capital backing, robust governance standards, and a well-prepared application.

If you are planning to apply for a payment aggregator license in India, our team of professionals will help you with eligibility and documentation. Connect with us at enquire@kdpaccountants.com, and we will guide you through the approval process.