Consider the following statements regarding payment aggregators in India 1 A payment aggregator is a...........

Indian Economic System Money and banking

Consider the following statements regarding payment aggregators in India.

1.A payment aggregator is a service provider that integrates various options of online payments together and brings them into one place for merchants.

2.Under the payment aggregator framework, only firms approved by the RBI can acquire and offer payment services to merchants.

Which of the above statements is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Explanation:

Bothe the statements are correct

Who are payment aggregators?

Online payment aggregators can onboard digital merchants and accept payments on their behalf after getting a licence from the RBI. The central bank introduced a framework for such entities in March 2020.

Under the payment aggregator framework, only firms approved by the RBI can acquire and offer payment services to merchants, which brings them under the direct purview of the regulator.

According to RBI rules, a company applying for aggregator authorisation must have a minimum net worth of Rs 15 crore in the first year of application, and at least Rs 25 crore by the second year. It also must fulfil the “fit and proper” criteria, and be compliant with global payment security standards.