Less than a month after the Reserve Bank of India (RBI) established rules for digital lending, payment aggregators made the decision to contact the central bank for assistance.
According to the new RBI guidelines, The borrower’s bank account and the RE’s bank account must be used exclusively for loan disbursements and repayments, and neither the LSP’s pass-through/pool account nor those of any other third parties are permitted. Despite the fact that payment aggregators’ function in transactions has been eliminated, the aggregators and their advocacy organisation Fintech Association for Consumer Empowerment (FACE), according to the Economic Times, are pushing for a relaxation of these standards. The RBI has completely disregarded the function of payment aggregators and all middlemen, claims a payment aggregator executive who was quoted in the report. As a result, they are interested in learning about their new roles and the reasons behind their removal from the old framework.