RBI Approves 32 Entities As Online Payment Aggregators; PhonePe Application Under Consideration, Paytm's Returned

Payments arms of Google, Amazon, Zomato and Reliance Jio are among 32 entities given in-principle approval by Reserve Bank of India (RBI) for operating as online payment aggregators (OPAs).

OPAs are entities that facilitate e-commerce sites and merchants to accept various payment instruments from the customers for completion of their payment obligations without the need for merchants to create a separate payment integration system of their own.

They facilitate merchants to connect with acquirers. In the process, they receive payments from customers, pool and transfer them on to the merchants after a time period.

In a statement, RBI said that the while the exercise of scrutiny of applications of online PAs is an ongoing process, for the purpose of disseminating information and ensuring greater transparency, the list of entities who have submitted application to RBI seeking authorisation to act as online PAs was being published.

The list, according to RBI, will be updated on a fortnightly basis.

While 32 entities have been given in-principle authorisation, 18 other applications including from PhonePe and BhartiPay, are still "under process".

Meanwhile, applications from Freecharge, Paytm, PayU and Tapits Technologies have been returned. However, they have been permitted by the banking regulator to apply within 120 days from the date of return, and can continue business subject to the condition that these entitites should not onboard new merchants.