The RBI Guidelines on Regulation of Payment Aggregators and Payment Gateways, outlined in RBI/DPSS/2019-20/174, serve as a comprehensive framework to regulate and streamline the operations of entities functioning as Payment Aggregators (PAs) and Payment Gateways (PGs). These guidelines are designed to safeguard consumer interests, foster innovation, and ensure the resilience of the digital payment ecosystem.
Regulatory Audits
RBI Guidelines on Regulation of Payment Aggregators and Payment Gateways
What are RBI Guidelines on Regulation of Payment Aggregators and Payment Gateways (RBI/DPSS/2019-20/174)?
The RBI Guidelines on Regulation of Payment Aggregators and Payment Gateways are a set of directives issued by the RBI to provide a regulatory framework for entities operating in the domains of Payment Aggregation and Payment Gateway services. These guidelines aim to establish clear standards, enhance consumer protection, and maintain the integrity of the digital payment infrastructure.
Benefits of
RBI Guidelines on Regulation of Payment Aggregators and Payment Gateways (RBI/DPSS/2019-20/174)
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Enhanced Consumer Protection
The guidelines prioritize consumer protection by establishing mechanisms for complaint resolution, ensuring transparency in transactions, and safeguarding customer interests.
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Operational Resilience
Entities that adhere to the guidelines benefit from enhanced operational resilience, as the framework defines clear operational parameters and risk management practices.
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Promotion of Innovation
The guidelines foster innovation by providing a regulated framework that encourages entities to explore new technologies and payment solutions while ensuring compliance with regulatory standards.
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Regulatory Compliance
Adherence to the guidelines ensures regulatory compliance, minimizing the risk of penalties and legal consequences. Entities demonstrate a commitment to meeting the highest standards set by the regulatory authority.
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Trust in the Digital Payment Ecosystem
The guidelines contribute to building trust in the digital payment ecosystem. Consumers are more likely to engage with Payment Aggregators and Payment Gateways that operate under a regulated framework, ensuring the security of their transactions.
Deliverables of Our Regulation of Payment Aggregators and Payment Gateways (RBI/DPSS/2019-20/174) Approach
RBI Authorization Assistance for Payment Aggregators (PAs) and Payment Gateways (PGs)
Qseap helps businesses apply for and secure necessary RBI authorizations under the Payment and Settlement Systems Act (PSSA). This includes preparing documentation, filing applications, and ensuring all compliance measures are met before submission to the RBI.
Separation of PA and Marketplace Operations
For businesses that provide both e-commerce and payment aggregation services, Qseap assists in separating these functions to meet RBI requirements. We guide you through restructuring processes and provide support to ensure your PA operations comply with regulatory standards independently.
Comprehensive Compliance Assessment and Gap Analysis
Our experts perform a thorough assessment of your PA/PG system against RBI’s latest guidelines, identifying any compliance gaps. We offer actionable insights to align your operations with RBI’s regulatory requirements, covering licensing, data protection, and security protocols.
Technology and Infrastructure Optimization
Our team works to optimize your payment gateway’s technological infrastructure according to the RBI’s recommendations, such as implementing secure transaction mechanisms, ensuring data integrity, and setting up effective fraud prevention systems as outlined in RBI guidelines.
Data Security and Encryption Implementation
Qseap ensures that your payment systems comply with RBI’s stringent data security and encryption standards. We help implement the best practices for secure transaction processing and non-storage of customer card credentials, aligning with the guidelines on data localization and privacy.
Ongoing Monitoring and Compliance Audits
To ensure continuous compliance, Qseap provides regular monitoring services and conducts compliance audits of your payment aggregator and gateway systems. This includes reviewing security measures, assessing any changes in RBI regulations, and providing updates or corrective actions to mitigate any risks.
Frequently Asked Questions
The RBI guidelines aim to regulate the operations of Payment Aggregators (PAs) and Payment Gateways (PGs) to ensure transparency, consumer protection, and secure payment processes. These guidelines cover licensing, governance, technology standards, and compliance requirements for entities involved in digital payments, with a focus on data protection and privacy.
According to the RBI guidelines, all Payment Aggregators (PAs) must obtain authorization under the Payment and Settlement Systems Act (PSSA) to operate legally. This ensures that the PA follows the regulatory standards set for security, financial integrity, and consumer protection.
Qseap Infotech assists businesses by offering consultation and implementation services to ensure full compliance with RBI’s PAPG guidelines. We help with obtaining necessary authorizations, implementing security standards, and integrating technology recommendations as per RBI’s regulations.
Non-bank Payment Aggregators (PAs) must apply for authorization by the RBI, separate their PA operations from e-commerce functions, and ensure the non-storage of customer card data. Compliance with these standards is crucial to avoiding penalties and ensuring secure operations.
The RBI’s latest guidelines introduce tighter controls on payment data security, require PAs to be licensed, and impose stricter governance standards. It also mandates the non-storage of sensitive customer data, and in some cases, the separation of PA operations from other business units.
The deadline for non-bank PAs to comply with the storage and data security requirements was extended to December 31, 2021. However, businesses must review and implement these guidelines promptly to avoid disruptions in their operations
Qseap provides robust security assessments, including vulnerability testing and compliance checks, to ensure that payment systems align with RBI’s stringent data security requirements. Our experts help businesses maintain secure payment processing systems that meet RBI’s security standards.
Yes, Qseap offers end-to-end support for Payment Aggregators seeking RBI authorization. This includes preparing the necessary documentation, ensuring compliance with RBI’s operational and security guidelines, and managing the entire authorization process to ensure a smooth approval.
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