Applications for authorization under the 2007 Payment and Settlement Systems Act from well-known online PAs (non-bank payment aggregators), including Freecharge PayTM Payments Services, Payment Technologies, and PayU Payments, have been rejected by the Indian Central Bank (PSS Act). Also, the central bank amended the Technology Tapits application. Yet, to be fair, within 120 days of the return date, these four PAs were given the chance to reapply.
Thus, in accordance with the Reserve Bank of India’s update on the status of Applications of Online PAs received under the PSS Act, the aforementioned PAs, whose applications were returned in the last two months or so, may continue operating subject to the stipulation that no new merchants should be onboarded until advised otherwise.
PAs are organisations that enable merchants and e-commerce sites to accept different payment instruments from customers in order to fulfil their payment commitments without the need for the merchants to develop their own separate payment integration system.
The 32 existing PAs that have been given “In Principle Authorisation,” allowing them to function as online PAs, include Amazon (Pay) India, Computer Age Management Services, Google India Digital Services, Infibeam Avenues, NSDL Database Management, NTT DATA Payment Services, Pine Labs, Razorpay Software, Reliance Payment Solutions, and Zomato Payments. It is now processing the applications of 18 other PAs, including Instamojo Technologies, PhonePe, and Unimoni Enterprise Solutions.