RBI issues new guidelines clarifying rules for payment system operators
The Reserve Bank of India (RBI) just rolled out fresh guidelines for payment system operators (think: the companies behind your favorite payment apps).
Now, there's a clear set of rules on who can run these services, what kind of money they need to show, and how they can step away if needed.
The goal? To make digital payments safer and more reliable for everyone.
Perpetual authorization, 20% risky country cap
Instead of waiting for RBI to give out approvals one by one, companies can now apply anytime through an online portal and get perpetual authorization for new entities, while existing authorized payment system operators may also receive perpetual validity on renewal if they follow all the rules and if compliance with regulatory conditions and the absence of supervisory concerns is met.
To qualify, you'll need to prove you're financially solid and play by the book.
There are also tighter restrictions on foreign investments from risky countries: aggregate fresh investments from these jurisdictions must remain below 20% of voting power, and such investors are not permitted to acquire significant influence.
Operator exit: dues clearance, 1-year cooling-off
If a payment operator wants to shut down, they have to clear all dues, inform users and partners, and the central bank may impose a one-year cooling-off period, during which such entities will not be permitted to apply to operate a payment system.
It's all about keeping things fair, and making sure your money moves stay smooth.