What changed
RBI observed that some PAs had their applications returned for not meeting eligibility criteria, including the minimum net worth of ₹15 crore by March 31, 2021, forcing them to stop operations within six months. To avoid disruption in the payments ecosystem due to COVID-19, RBI now allows these PAs a new window to apply by September 30, 2022, with net worth as on March 31, 2022. They can continue operations until RBI communicates the decision on their application.
What it means for you
Banks and lenders dealing with non-bank PAs should note that these PAs now have extra time to regularise their authorisation status, reducing the risk of sudden service disruptions. The ₹25 crore net worth deadline of March 31, 2023, remains unchanged, so PAs must still plan for that milestone. This extension gives the ecosystem breathing room but does not relax the ultimate compliance requirements.
What you must do
- Verify if your partner PAs are existing as on March 17, 2020, and ensure they apply by September 30, 2022.
- Confirm that such PAs have achieved ₹15 crore net worth as on March 31, 2022.
- Monitor the ₹25 crore net worth deadline of March 31, 2023, for all PAs in your network.
- Advise PAs to maintain operations only until RBI communicates the application outcome.
Who it affects
Non-bank Payment Aggregators (PAs) existing as on March 17, 2020, Banks and lenders that partner with such PAs, Payment system participants and providers
What is the new deadline for PAs to apply for authorisation?
Existing non-bank PAs (as on March 17, 2020) can now apply by September 30, 2022, instead of the earlier September 30, 2021 deadline.
Can PAs continue operations while their application is pending?
Yes, they are permitted to continue operations until they receive communication from RBI regarding the fate of their application.
Is the ₹25 crore net worth deadline still March 31, 2023?
Yes, the timeline of March 31, 2023 for achieving the net worth of ₹25 crore remains unchanged.