The Reserve Bank of India (RBI) first introduced a formal licensing framework for payment aggregators (PAs) in India in 2020. Through payment aggregator framework<\/a>, these rules apply to non-bank entities that collect payments on behalf of merchants \u2014 such as cards, UPI, wallets or other instruments. The rules aim to protect merchant funds, ensure safe flows and limit systemic risk in the payments system.<\/p>\n Key requirements include: a minimum net worth (initially ?15 crore, rising to ?25 crore), escrow account structures for merchant funds, strong KYC and AML controls, and segregation of merchant-money from own capital. According to a recent update, aggregators must also implement annual CERT-In audits and keep user payment data in tokenised or localised form. <\/p>\n Another important dimension is authorisation. PAs must apply to the RBI under Section 7 of the PSS Act, 2007, submit details of ownership, systems, governance, and merchant onboarding process. Until final approval is granted, new merchant onboarding is often restricted. }<\/p>\n <\/p>\n Insight:<\/b> A PA licence is no longer a bureaucratic formality \u2014 it\u2019s a strategic asset for India\u2019s digital commerce infrastructure.<\/p>\n <\/i><\/p>\n Several firms have already secured in-principle or full authorisation from RBI. According to industry sources, major players such as Razorpay Software Pvt Ltd, Cashfree Payments India Pvt. Ltd. and several others received licences while others such as One97 Communications (via its subsidiary) and PayU Payments Pvt. Ltd. continue to await final clearance. <\/p>\n According to a March 2023 list by RBI, 32 entities received in-principle approval. Since then, the approval process has slowed, making the licence increasingly scarce and coveted. A 2025 industry note described PA licences as \u201cIndia\u2019s next fight club\u201d \u2014 where scale, data access and merchant reach become strategic battlegrounds. <\/p>\n Among those waiting, firms with strong merchant-acquiring business, deep fintech-tech stacks and robust governance are best positioned. Smaller players or niche fintechs may find themselves squeezed as number of approved slots remains limited.<\/p>\n If your firm is eyeing the next wave of PA licences, readiness matters. Through rbi pa authorisation<\/a>, here are key areas to focus on:<\/p>\n <\/p>\n Tip:<\/b> If you\u2019re building a fintech that handles payments, view PA licence readiness like a box-seat ticket to the payments economy.<\/p>\n <\/i><\/p>\nWho Has Already Got the Nod \u2014 and Who\u2019s Waiting<\/h2>\n
What Firms Should Prepare: Criteria for the Next Round<\/h2>\n
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Why These Licences Matter for India\u2019s Fintech Future<\/h2>\n