This edition of JSA’s FinTech Newsletter covers the significant regulatory developments from July to September 2025, a period marked by the Reserve Bank of India’s (“RBI”) efforts to consolidate and strengthen the payments ecosystem.
A landmark development is the issuance of RBI’s Master Direction on Regulation of Payment Aggregators, which unifies the framework for physical, online, and cross-border Payment Aggregators (“PAs”). This new regime introduces distinct categories for PAs, permits third-party payouts under specific conditions, and formally recognises inter-PA partnerships.
Further updates include amendments to the RBI’s Know Your Customer (“KYC”) Master Directions to enhance financial inclusion, particularly for persons with disabilities, and the expansion of biometric e-KYC to include Aadhaar face authentication. RBI has also mandated 2 (two)-factor authentication for all digital payment modes and convened a committee to propose a framework for the responsible use of artificial intelligence in finance. On the industry front, the National Payments Corporation of India introduced enhanced requirements for its ‘Unified Payments Interface Circle Full Delegation’ framework.
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