Based on the report, a senior government at one of many cost aggregators stated many of the affected retailers are small and casual. Their participation stays essential for the regulator due to the function such companies play in increasing monetary inclusion and bringing digital funds to smaller markets.
The RBI’s KYC necessities are geared toward enabling monetary establishments to determine the id and deal with of consumers and assist hint unlawful actions, together with fraud and cash laundering. The most recent compliance necessities comply with the RBI’s up to date and consolidated Grasp Instructions issued in September 2025, which formally classify cost aggregators into three segments: PA-On-line, PA-Bodily and PA-Cross Border.
Though the regulator’s grasp instructions have been issued final yr, giving retailers and cost corporations time to conform, the dimensions of the train has created operational strain. The report stated that cost aggregators have sought extra time as they work by the verification backlog.
The problem for PAs extends past reaching thousands and thousands of retailers. They have to additionally be sure that retailers perceive the RBI’s KYC and service provider due-diligence necessities. Many of those small retailers account for a comparatively restricted share of total cost volumes and values and are unlikely to pose important ecosystem-level dangers by way of transaction worth.
Most cost aggregators anticipate to finish round 80% of the re-KYC train by the September 15 deadline. Nevertheless, capability constraints stay a priority as a result of RBI guidelines require in-person KYC to be carried out by workers of the cost aggregator moderately than third-party personnel. This has pressured a number of gamers working with long-tail casual retailers to extend staffing over the previous yr.
The push for an extension comes amid issues that failure to finish verification throughout the prescribed window may have an effect on a lot of retailers and doubtlessly disrupt digital cost acceptance.
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