PayPal has received in-principle approval from the Reserve Bank of India (RBI) to operate as a cross-border payments aggregator under India's Payment Aggregator Cross-Border (PA-CB) license framework. This regulatory mandate restricts the market to approved providers, requiring fintech companies to obtain proper licensing to facilitate cross-border payments from India.
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The Reserve Bank of India (RBI) is planning to remove transaction limits on the Unified Payments Interface (UPI) system for merchant payments, which were previously capped at ₹1 lakh. This amendment will enable larger payments for big-ticket items like education, healthcare, and vehicle purchases, potentially expanding UPI's use cases for businesses and consumers.
The Indian government is considering a policy to offer a 2% discount to consumers using UPI for instant payments compared to credit card prices, with stakeholder consultation ongoing and a decision expected next month. Additionally, the NPCI has mandated a reduction in UPI transaction times from 30 to 15 seconds starting June 16, 2025. These changes aim to promote digital payment adoption and improve transaction efficiency.
India's Unified Payments Interface (UPI) is introducing biometric authentication (fingerprint or facial scan) as an alternative to PIN-based verification for real-time payments, following a request from the Reserve Bank of India (RBI) to enhance security and speed. This represents a significant regulatory-driven change in payment authentication requirements affecting all UPI participants.
The Indian government is evaluating a proposal to reinstate merchant discount rates (MDR) on UPI and RuPay debit card transactions, which have been fee-free since 2020. A tiered pricing system would impose higher charges on larger merchants while potentially exempting smaller businesses. This change aims to address revenue concerns for banks and payment providers facing rising compliance costs.
The Reserve Bank of India is proposing a one-hour delay for peer-to-peer UPI transactions exceeding 10,000 rupees (approx. $100) to combat authorized push payment fraud. This would give banks time to investigate suspicious transactions and provide consumers with a cooling-off period, with additional authentication required for transactions above 50,000 rupees.
India has approved new interim climate goals for 2035, including a 47% reduction in economy-wide emissions intensity and achieving 60% of electric power capacity from non-fossil sources. These targets form India's updated Nationally Determined Contribution (NDC) under the Paris Agreement, requiring companies to align operations with these climate objectives.
India's SEBI has proposed a regulatory framework allowing gift card balances to be converted into mutual fund shares, with funding limited to electronic transfers/UPI and a 50,000 rupee transaction cap. This aims to expand investment access and enhance financial inclusion by enabling underrepresented communities to begin investing through prepaid instruments.
India has launched the Indian Carbon Market Portal to implement the Carbon Credit Trading Scheme (CCTS), establishing a compliance market for 490 industrial units across energy-intensive sectors with Greenhouse Gas Emission Intensity targets. The platform handles registration, monitoring, reporting, and verification, with formal trading set to begin within four months, helping companies comply with external mechanisms like the EU's CBAM.
India has introduced new labor codes that consolidate and modernize decades of employment laws, reshaping hiring, payment, and workforce management practices. These changes require immediate attention from organizations with operations in India to ensure compliance with the updated regulatory framework.
India has introduced new labor codes that consolidate and modernize decades of employment laws, reshaping hiring, payment, and workforce management practices. These codes represent a significant regulatory overhaul affecting all organizations with operations or teams in India, requiring updates to compliance frameworks and employment practices.