Source: ET
Context:
Aditya Birla Capital’s subsidiary, Aditya Birla Capital Digital Ltd (ABCDL), has received in-principle authorization from the Reserve Bank of India (RBI) to operate as an online payment aggregator under the Payment and Settlement Systems Act, 2007.
What is a Payment Aggregator?
A Payment Aggregator (PA) is a third-party service provider that enables merchants (online or offline) to accept various types of digital payments without having to directly integrate with banks or individual payment networks.
Examples in India
- Razorpay
- PayU
- CCAvenue
- BillDesk
Payment and Settlement Systems Act, 2007
The Payment and Settlement Systems Act, 2007 is the key legislation in India that provides a legal framework for regulation and supervision of payment systems in the country. It empowers the Reserve Bank of India (RBI) to regulate and oversee payment and settlement systems to ensure safety, efficiency, and stability.
Objectives
- To regulate and supervise payment and settlement systems in India.
- To designate RBI as the authority for authorization and oversight of payment systems.
- To ensure secure, efficient, and transparent transactions in financial markets.
- To promote consumer confidence in digital and non-cash payment mechanisms.
