The Reserve Bank of India (RBI) has proposed draft regulations for payment aggregators (PAs) to enhance risk management through robust Know Your Customer (KYC) procedures for merchants. According to the draft guidelines, PAs must conduct Contact Point Verification (CPV) and verify bank accounts where funds of small merchants are settled. Small merchants, defined as those with turnover below Rs 5 lakh per annum and not registered under GST, require CPV. Medium merchants, with turnover below Rs 40 lakh per annum and not registered under GST, also require CPV.
RBI’s New Rules Require KYC Verification for Offline Payment Aggregators
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