Reference · regulation
The rules behind the guides
Where a guide on this site states a rule, it links to the official source. This page collects those sources in one place: what each direction covers, in plain language, and which guides explain it. Summaries were checked against the official text when this page was updated.
Collecting and settling payments
Who may collect money for merchants, how it's held, and how payments are authorised.
Master Direction on Regulation of Payment Aggregator (PA)
15 Sep 2025
Payment aggregators and gateways; online, physical and cross-border PAs; escrow accounts; merchant due diligence; charges shown before payment; PA-CB ₹25 lakh per transaction; PAs not to carry out marketplace business.
Official text: Master Direction on Regulation of Payment Aggregator (PA)PA explainerPayment gatewayCross-border D2C
Authentication mechanisms for digital payment transactions Directions, 2025
25 Sep 2025
Two factors of authentication for digital payments, and listed exemptions such as small contactless card payments, recurring mandate debits, NETC and tap-and-pay UPI on NFC terminals.
Official text: Authentication mechanisms for digital payment transactions Directions, 2025One-click checkoutFASTagPOS machines
Card transactions in contactless mode: relaxation in requirement of additional factor of authentication
4 Dec 2020
Contactless card payments at POS up to ₹5,000 per transaction without the additional factor, from 1 January 2021.
Official text: Card transactions in contactless mode: relaxation in requirement of additional factor of authenticationPOS machines
Permitting Card-on-File Tokenisation (CoFT) Services
7 Sep 2021
Saved cards through tokens; only card issuers and networks may store actual card data.
Official text: Permitting Card-on-File Tokenisation (CoFT) ServicesCard tokenisation
Recurring payments and bill payments
Mandates for repeat debits, and the bill payment system.
Digital Payments – E-mandate Framework, 2026
21 Apr 2026
Recurring card, UPI and prepaid instrument payments: registration with authentication, notices before and after debits, limits without extra authentication.
Official text: Digital Payments – E-mandate Framework, 2026Subscription paymentsNACHNACH vs eNACH
Master Direction – Bharat Bill Payment System Directions, 2024
29 Feb 2024, in force 1 Apr 2024
BBPS participants, fetching bills before payment, complaints and settlement, and authorisation for bill payment systems outside BBPS.
Official text: Master Direction – Bharat Bill Payment System Directions, 2024BBPSBBPS explainer
Cards, prepaid instruments and lending
Regulated products that businesses often offer through partners.
Master Directions on Prepaid Payment Instruments (PPIs)
Updated 27 Dec 2024
PPI types and limits, KYC levels, gift PPIs, interoperability, expiry and unclaimed balances, co-branding, and PPIs for foreign visitors.
Official text: Master Directions on Prepaid Payment Instruments (PPIs)Prepaid cardsInbound travel
Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022
Updated 7 Mar 2024
Business, corporate and charge cards; co-branding; blocking and reporting; closure within seven working days.
Official text: Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022Corporate cardsBanking-as-a-service
Reserve Bank of India (Digital Lending) Directions, 2025
8 May 2025
Lending service providers, Key Fact Statements, cooling-off, disbursal to the borrower's account, repayment direct to the lender, data access and grievances.
Official text: Reserve Bank of India (Digital Lending) Directions, 2025Working capitalLine of creditNBFCs and lending
Frequently Asked Questions: Trade Receivables Discounting System (TReDS)
RBI FAQ
How MSME invoices on larger buyers are financed on RBI-authorised platforms, without recourse to the MSME.
Official text: Frequently Asked Questions: Trade Receivables Discounting System (TReDS)Working capital
Transfers, timing and failures
How bank transfers behave, and what happens when payments fail.
FAQs on NEFT and RTGS
RBI FAQs
NEFT 24x7 in half-hourly batches with no RBI limit; RTGS 24x7 since 14 Dec 2020 with a ₹2 lakh minimum; credit and return timelines.
Official text: FAQs on NEFT and RTGSPayment railsSettlement holidays
Harmonisation of turnaround time and customer compensation for failed transactions
20 Sep 2019
Timelines for reversing failed transactions across authorised payment systems, and compensation when they're missed.
Official text: Harmonisation of turnaround time and customer compensation for failed transactionsRefundsPayment rails
Identity, data and banking correspondents
Knowing your customer, where payment data lives, and banking through agents.
Master Direction – Know Your Customer (KYC) Direction, 2016
Updated 14 Aug 2025
KYC for customers of RBI-regulated entities, including beneficial ownership for businesses.
Official text: Master Direction – Know Your Customer (KYC) Direction, 2016KYCKYB
Storage of Payment System Data
6 Apr 2018
Payment system data to be stored in a system only in India; the foreign leg of a transaction may also be stored abroad.
Official text: Storage of Payment System DataRegulation and securityEnterprises
Financial Inclusion by Extension of Banking Services – Use of Business Correspondents
28 Sep 2010, since revised
Banks' use of business correspondents: bank responsibility, cash handling, commissions and customer protection.
Official text: Financial Inclusion by Extension of Banking Services – Use of Business CorrespondentsBC programmes
Reading an RBI direction
Directions are long, but most follow the same pattern: who they apply to, definitions, the substantive rules, and annexes with reporting and technical requirements. Start with the definitions; many misunderstandings come from reading a rule without knowing whether it applies to a gateway, an aggregator or a bank.
Check the date and any “updated as on” note, since directions are amended and consolidated over time, and look for the list of repealed circulars at the end, which tells you what the direction replaced.
Keep in mind
- Summaries here aren't legal advice
- Rules change; the official text is authoritative
- Sector regulators and other laws may also apply
Questions about the rules
Do merchants have to comply with these directions?
Most are addressed to regulated entities, such as banks, payment aggregators and lenders, rather than to merchants. They still shape what your providers ask of you and must do for you, which is why knowing them helps.
Are these summaries legal advice?
No. They're plain-language summaries of the official text, checked when this page was updated. For decisions, read the direction itself and take legal advice.
Why aren't NPCI's circulars listed?
NPCI's circulars aren't reliably accessible to automated checks, so NPCI-specific numbers on this site are kept generic unless verified from the official text.
What about laws outside RBI?
Some guides also cite other official texts, such as the Promotion and Regulation of Online Gaming Act, 2025 and RERA's separate-account rule via a state authority's directions. Data protection, tax and sector regulators' rules are pointed to generically.