Cashless Consumer has recommended full and direct regulation of payment aggregators and payment gateways, "with significant changes to scope and modalities of regulation". It also said that RBI should not prohibit PAs and PGs from dealing with merchants who do not have a physical presence in India. Cashless Consumer made these recommendations in its submission to the Reserve Bank of India in response to the RBI’s discussion paper on guidelines for PAs and PGs. Cashless Consumer is a consumer awareness collective that focusses on digital payments. The key recommendations have been summarised below: Recommendation 1: Implement on-tap licensing/authorisation notified for payment aggregators and payment gateways. This is because existing PAs and PGs do not have any licensing criteria. Recommendation 2: Do not prohibit PGs and PAs from dealing with merchants who do not have a physical presence in India as it…
