RBI Grants PayU Authorization for Comprehensive Payment Aggregation
PayU, a leading fintech platform, announced on Tuesday that it has received crucial authorization from the Reserve Bank of India (RBI) to operate as a comprehensive Payment Aggregator (PA). This approval falls under the Payment and Settlement Systems (PSS) Act and significantly broadens PayU’s operational scope.
A Major Regulatory Milestone for PayU
The RBI’s authorization is a major step for PayU, enabling it to aggregate payments across all major transaction types and channels:
Online Transactions: Covering digital payments for e-commerce and web services.
Offline Transactions: Facilitating point-of-sale (POS) and in-person payments.
Cross-Border Transactions: Including both inward (receiving funds from abroad) and outward (sending funds abroad) remittances.
This comprehensive approval is a testament to PayU’s compliance with the RBI’s stringent regulatory framework for payment systems.
According to PayU, this authorization allows them to offer seamless, end-to-end payment services for their vast network of merchants. Specifically, the approval enables the platform to provide:
Payment Acceptance: Simplified process for receiving payments from customers globally.
Settlement: Efficient and timely transfer of funds to merchants’ accounts.
Cross-Border Solutions: Facilitating smooth and compliant international money movement.
This move strengthens PayU’s position as a key player in India’s rapidly evolving digital payment ecosystem, allowing it to unlock operational efficiencies for businesses engaging in both domestic and international commerce.
The RBI’s push for formal Payment Aggregator licensing is designed to bring order, compliance, and security to the digital payments space. By securing this multi-faceted license, PayU is well-positioned to meet the growing demand for secure and compliant payment infrastructure.
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