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Daily Current Affairs – 2020

Topic: For Prelims and Mains

Payment Aggregators & Gateways

Why in News?

The Reserve Bank of India (RBI) has released guidelines for regulating activities of Payment Aggregators (PAs) and Payment Gateways (PGs) in the country.

PAs and PGs are intermediaries playing an important function in facilitating payments in the online space.

Payment Aggregators and Payment Gateways:

  • Payment Aggregators facilitate e-commerce sites and merchants in accepting payment instruments from the customersfor completion of their payment obligations without the need for merchants to create a separate payment integration system of their own. Example:
  • Payment Gatewaysare entities that provide technology infrastructure to route and facilitate processing of an online payment transaction without any involvement in handling of funds. PGs in India mainly include
  • A Payment Gateway allows the merchants to deal in a specific payment option put on the portal, whereas a Payment Aggregator allows one to have multitudes of options for payment. Thus, a Payment Aggregator covers a payment gateway in its ambit.

Guidelines:

Non-bank PAs will require authorisation from the RBI under the Payment and Settlement Systems Act, 2007 (PSSA). A PA should be a company incorporated in India under the Companies Act, 1956 / 2013.

  • Banks provide PA servicesas part of their normal banking relationship and do not therefore require a separate authorisation from RBI.
  • E-commerce marketplaces(e.g. flipkart, Paytm) providing PA services should separate PA services from the marketplace business and they should apply for authorisation on or before 30th June, 2021.
  • PGs will be considered as ‘technology providers’ or ‘outsourcing partners’ of banks or non-banks, as the case may be.

 Capital Requirement:

ü  Existing PAs have to achieve a net worth of Rs15 crore by 31st March, 2021 and a net worth of Rs 25 crore on or before 31st March, 2023.

ü  The net worth of Rs 25 crore has to be maintained at all times thereafter.

ü  New PAs should have a minimum net worth of Rs15 crore at the time of application for authorisation and have to attain a net worth of Rs 25 crore by the end of the third financial year of the grant of authorisation. The net worth of Rs 25 crore has to be maintained at all times thereafter.

Facts for Prelims

Safe Hands Challenge:

It is a campaign launched by the World Health Organization in the wake of 2019-20 coronavirus pandemic.

The campaign urges everyone to wash their hands regularly for 40 seconds to keep themselves safe and prevent the transmission of disease.

Danube-Oder-Elbe Canal:

  • It intends to connect the Danube, Oder and Elbe rivers and thus provide another navigable link from the Black Sea to the North and Baltic Seas.
  • Environmental organisations from across central and eastern Europe are criticising this project. They say, the project, if constructed, would destroy the region’s river landscapes in violation of EU environmental laws.

 

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