New Delhi: The Reserve Bank on Tuesday came out with draft guidelines to further strengthen regulations on payment aggregators, a move aimed at boosting the payment ecosystem.
The draft also covers the physical point-of-sale activities of payment aggregators (PAs).
The RBI said that given the growth in digital transactions and the significant role that PAs play in this space, the current directions on PAs are proposed to be updated and cover, inter alia, KYC and due diligence of merchants, operations in Escrow accounts, and intended to strengthen the payment ecosystem.
The payments ecosystem in India includes online PAs and PAs, which facilitate face-to-face/proximity payment transactions.
On KYC and due diligence, the draft said the payment aggregators should undertake due diligence of merchants onboarded by them in accordance with Customer Due Diligence (CDD) prescribed in Master Directions on Know Your Customer (MD-KYC), 2016.
"PAs shall ensure that marketplaces onboarded by them do not collect and settle funds for services not offered through their platform," said the draft on which the RBI has invited comments by May 31, 2024.
For face-to-face/proximity payment transactions done using cards, from August 1, 2025, the draft said no entity in the card transaction/payment chain, other than the card issuers and/or card networks, shall store the Card-on-File (CoF) data.
"Any such data stored previously shall be purged," the draft added.
The draft further said non-banks providing PA-P services should have a minimum networth of ₹ 15 crore at the time of submitting an application to the RBI for authorisation and a minimum networth of ₹ 25 crore by March 31, 2028.
The net worth of ₹ 25 crore shall be maintained at all times thereafter.
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Mumbai (PTI): The Bombay High Court on Friday rejected a petition filed by the Communist Party of India (Marxist) against Mumbai police's refusal to allow a protest against the alleged genocide in Gaza, and advised the party to focus on domestic issues.
The CPI(M) criticised the court's remarks, claiming that it ignored constitutional freedoms and India's traditional support for Palestinian freedom and statehood.
The party moved the court after the police last month denied the All India Peace and Solidarity Organisation a permission to stage a rally at Azad Maidan ground in south Mumbai to protest the "genocide" in Gaza.
A bench of Justices Ravindra Ghuge and Gautam Ankhad dismissed the petition, stating that the party should concentrate on problems affecting the country instead of focusing on issues thousands of miles away.
Advocate Mihir Desai, appearing for the CPI(M), told the HC that police denied permission on the ground that it could lead to a law and order problem.
But citizens have the right to demonstrate at a spot designated for such events, and the possibility of law and order situation could not be a reason to deny that right, he contended.
The court, however, did not accept the argument.
In a statement, CPI (M) criticised the court's stand.
"The Polit Bureau of the CPI (M) strongly condemns the observations of the Bombay High Court bench while rejecting an application by the party to challenge the Mumbai Police's refusal to allow a protest action against the ongoing Israeli genocide in Gaza," it said.
While rejecting the plea, the court called into question the patriotism of the party, the CPI (M) claimed.
The HC also opined that the party does not understand `what this could do to the foreign affairs of the country' and, instead of taking up issues such as garbage dumping, pollution, sewerage and flooding it was protesting about something happening far away on foreign land, the CPI (M) further claimed.
The HC appeared to be unaware of either the provisions of the Constitution which enshrines the rights of a political party, or the "history of our country and our people's solidarity with the Palestinians and their legitimate right to homeland," the party said.
The HC observations appeared to be "in line with the central government," the CPI (M) said.
Mahatma Gandhi, the national movement and "subsequent foreign policy of independent India" had not flinched from supporting the cause of Palestinian people's right to freedom and homeland, the party said.
The HC also did not take into account "unequivocal condemnation globally against Israeli action and the stated positions of the UN bodies and the International Court of Justice," the CPI(M) said.