RBI approves PayU as payment aggregator for online, offline transactions
What's the story
PayU has received integrated authorization from the Reserve Bank of India (RBI) to operate as a payment aggregator. The approval covers online, offline, and cross-border transactions under the Payment and Settlement Systems Act. It allows PayU to handle payment acceptance and settlement across digital and physical channels, as well as aggregate both inward and outward cross-border payments.
Operational expansion
Approval enhances PayU's operational scope
The RBI approval strengthens PayU's ability to provide merchants with unified payment services across different touchpoints. A company spokesperson said that the approval expands its operational scope for domestic and international transactions. This latest clearance puts PayU among the regulated entities allowed to offer an integrated suite of payment aggregation services.
Compliance requirements
PayU's digital payment infrastructure and RBI's guidelines
PayU currently provides digital payment infrastructure for businesses across sectors, including card, Unified Payments Interface (UPI), net banking, and other online payment methods. The RBI's payment aggregator guidelines require entities to meet capital, governance, and security standards to operate across online/offline or cross-border categories. With the new authorization from RBI, PayU can continue onboarding merchants and expanding services in these segments under a regulatory framework.