PAPG Compliance

 Payment Aggregator and Payment Gateway is a recently acknowledged innovation by the Reserve Bank of India under the Department of Payment and Settlement System, driven by its Act, 2007 has periodic reports to the Reserve Bank of India and other external agency mandates by regulation prescribed. Connect and let’s foster more transparency and reporting of the Industry.

Introduction

Payment Aggregator (PA) and Payment Gateway (PG) in general read together and even understood together as similar products but in fact, it two different licenses and the nature of the activity is different in total however both are intermediaries playing an important function in facilitating payments in the online space. The major difference between these two terms is all about the handling of funds, so ever handling the funds on behalf of the client is an aggregator and just facilitating the flow of information on secured technology infrastructure is the gateway, both are the payments industry.

• Understanding the depth of reporting and compliance matter and fulfilling the same at given time frame is solo goal of this services. In fact, post registration the institution needs to draft, approved, maintain and publish various organization policy in its website. 
• Statistics of Transaction Handled by 7th of next month 
• Banker’s certificate on Escrow Account Debits and Credits – Internally audited – by 15th of the month following the quarter end.
• Auditor’s certificate on Maintenance of Balance in Escrow Account by 15th of the month following the quarter end.
• IS Audit Report and Cyber Security Audit report with observation noted, if any, including corrective/preventive action planned with closure date – externally audited by 31st May. 
• Net-worth certificate, Audited Annual Report with CA Certificate on Net Worth by 30th September
• These are few mandatory and listed reporting to be done by PA/PG entity to RBI on regular basis with given time frame.

It is imperative to know and understand the importance of regular reporting with RBI regarding the business activities in order to do business with out any regulator interfere thereon.