Nearly a decade after the digital lending space first saw default loss guarantee arrangements, they seem to have received regulatory blessing from the Reserve Bank of India, with the issuance of the D...
Published On: 10/07/2024
Practice Area: Technology, Media & Telecommunications, Financial Services
Authors:
The Reserve Bank of India (“RBI”) issued draft circulars on regulation of payment aggregators – physical point of sale and draft amendments for the PA-PG Guidelines. These draft circulars mark a significant shift in the payment aggregation regime with the proposal of offline payment aggregation being brought into the realm of regulation and significant changes sought to be made to the current applicable framework including the permissible manner of settlement of funds to merchants and involvement of marketplaces in the aggregation and settlement process.
INDUSLAW's Namita Viswanath, Shreya Suri, Raghav Muthanna, Sana Khan and Aditya G provide a nuanced analysis of the draft circulars and point out potential issues and regulatory ambiguities posed by the said circulars.
