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Payment Aggregators Urge RBI To Ease KYC Verification Requirement For Merchants

Inc42 · 11m

Fintech startup Decentro and other industry players are expressing concerns over the Reserve Bank of India's (RBI) requirement of physical KYC verification for merchants. Decentro has requested the RBI to push back the requirement, with PhonePe, BharatPe, and Mobikwik expected to follow suit. Payment aggregators fear that the new guidelines will increase the time and cost of onboarding merchants, potentially leading smaller businesses to abandon their services. Some stakeholders suggest limiting physical KYC verification to high-risk merchants or adopting digital verification methods. The RBI has been tightening regulations in the fintech space in response to increased digital adoption.