The Reserve Bank of India’s new draft guidelines on Know Your Customer (KYC) for Payment Aggregators (PAs) may have a significant impact on micro and small-scale businesses and solopreneurs.
Earlier this week, the central bank published draft directions for PAs, under which the latter are required to conduct Contact Point Verification of small merchants. PAs shall also verify the bank account in which funds of such merchants are settled.
“For medium merchants, PAs shall carry out CPV. PAs shall also obtain and verify one Officially Valid Document (OVD) of the proprietor / beneficial owner / person holding attorney and verify one OVD of the business.” the regulations…
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Source: https://entrackr.com/2024/04/rbis-draft-kyc-guidelines-add-burden-and-cost-for-payment-aggregators/