India’s already loss-making payments industry gets shaken up again

The RBI’s latest draft guidelines to regulate payment aggregators have sparked concerns about a potential increase in the cost of doing business.

India’s payments industry is on edge once again.

On 16 April, the Reserve Bank of India published two draft circulars proposing significant changes in the way payment aggregators operate in India. The new guidelines, likely to be finalized later this year, will significantly increase the cost of doing business for payments firms and make life even more difficult for merchants, according to three payments industry executives who spoke on condition of anonymity

What exactly do businesses fear? They worry that meeting the RBI’s demands would call for an overhaul of several back-end processes, driving up costs. And for merchants, …


Ashwin Manikandan

Ashwin covered fintech and banking at The Morning Context. Previously, he was at The Economic Times, where he worked across the finance, tech and startup verticals, breaking stories related to India’s banking system, startups in the new economy, digital payments, insurance and cryptocurrencies.