Samvriddhi Inclusive Growth Network Pvt Ltd (SIGN), a subsidiary of MOS Utility Ltd, has received in-principle authorisation from the Reserve Bank of India (RBI) to operate as an Online Payment Aggregator (PA-Online). Announced on 22 September 2026, the clearance allows SIGN to build online collection infrastructure for merchants once it secures final approval. The move marks its shift from assisted last mile banking into technology led digital payments focused on small businesses in rural and semi urban markets.
What Is a Payment Aggregator?
A payment aggregator is a company that collects online payments from customers on behalf of merchants and then settles the pooled money with those merchants. The RBI defines it as an entity that brings customers and merchants together through one or more payment channels on the merchant interface and later passes the collected funds to the merchant for purchase of goods, services or investment products.
In simple words, a small shop that wants to accept UPI, credit cards, debit cards and net banking does not need separate ties with each bank. It signs one contract with the payment aggregator. The aggregator provides a single checkout page or payment link, receives the customer money, holds it briefly in a protected account and transfers it to the shop after deducting a fee. The RBI, which is the central bank of India established in 1935 and headquartered in Mumbai, regulates this activity under the Payment and Settlement Systems Act, 2007.
The RBI now recognises three types of aggregators under its Master Direction on Regulation of Payment Aggregators, 2025, issued on 15 September 2025. PA-Online (PA-O) handles distant transactions where the card or phone is not present near the shop terminal, such as e-commerce checkouts. PA-Physical (PA-P) handles face to face transactions where both device and payment instrument are present together. PA-Cross Border (PA-CB) handles import and export payments for e-commerce that are permitted under the Foreign Exchange Management Act (FEMA), 1999. SIGN has received clearance only for the PA-Online category.
What SIGN Will Offer as a PA-Online
SIGN plans to offer a full online collection suite for merchants after final approval from the RBI. The planned services include payment gateway support for UPI, QR based payments, credit and debit cards and net banking, along with digital collections, payment links and dashboards to track payments. These tools will let even a small rural seller accept digital money without building its own technology system.
The company has stated that the PA-Online business will run as a dedicated digital vertical. It will remain separate from the existing Customer Service Point led assisted banking work. A Customer Service Point is a local kiosk where a business correspondent agent helps people with deposits, withdrawals through Aadhaar Enabled Payment System (AePS), micro ATM transactions and money transfers.
SIGN currently operates as a Corporate Business Correspondent, which is an institutional agent appointed by banks to extend banking services in remote areas. It works with banks such as the State Bank of India, Punjab National Bank, Bank of Baroda, UCO Bank and regional rural banks in Odisha and West Bengal. Its parent, MOS Utility Ltd, is a Mumbai based fintech company incorporated in 2009 that provides business to business to customer services such as remittances, bill payments, travel bookings and insurance distribution through agents and distributors. The parent is listed on the NSE EMERGE platform for small and medium enterprises. Management has said the immediate focus is to build a strong merchant aggregation platform, with scope later to evaluate other regulated digital financial services within the applicable framework.
How Payment Aggregators Work
A non bank payment aggregator collects customer money only for merchants with whom it has a written contract. The aggregator must complete merchant checks, including Know Your Customer verification, before onboarding. Once onboarded, the customer pays on the merchant checkout. The money moves to a special escrow account held by the aggregator with a Scheduled Commercial Bank in India.
An escrow account is a separate holding account where customer funds stay protected and untouched for other business. The RBI treats this account as a designated payment system under the Payment and Settlement Systems Act. Only permitted credits and debits are allowed. Credits include customer payments, refunds for failed transactions and pre funding with own funds. Debits include settlement to merchants, refunds to customers, transfer to another aggregator in the same chain and payment of the aggregator commission. The balance at the end of the day cannot fall below the amount still payable to merchants.
Final settlement follows fixed timelines. Amounts taken from the customer must reach the escrow bank on the same day or the next day, termed as Tp plus 0 or 1. Payment to the merchant must happen within one day after shipment intimation, delivery confirmation or expiry of the refund period, depending on who handles delivery. This discipline protects both buyers and sellers and keeps failed transaction refunds flowing through the same supervised channel.
Payment Aggregator vs Payment Gateway
Many readers confuse a payment aggregator with a payment gateway. The RBI draws a clear line between the two. A payment gateway provides only the technology pipe to route a transaction. A payment aggregator also handles the money and settles it.
| Feature | Payment Aggregator | Payment Gateway |
|---|---|---|
| Core role | Collects funds from customers, pools them and settles with merchants | Provides software to route transaction data between customer, bank and merchant |
| Handling of money | Yes, holds funds in escrow | No, never touches funds |
| RBI authorisation | Mandatory for non banks under the Payment and Settlement Systems Act | Treated as technology provider or outsourcing partner, no separate authorisation |
| Example in practice | Razorpay, PhonePe, Paytm, Easebuzz, Juspay and now SIGN (once finally approved) | A checkout software plug in used by a bank or an aggregator |
The distinction matters because only the aggregator carries settlement risk. That is why the RBI imposes net worth, governance, data security and escrow rules on aggregators and not on pure gateways.
How to Get a Payment Aggregator Licence in India
A non bank firm that wants to work as a payment aggregator must obtain authorisation from the RBI. The applicant must be a company incorporated in India under the Companies Act, 2013, and its Memorandum of Association must list payment aggregation as an activity. Banks do not need separate approval because they offer these services as part of normal banking.
The applicant files Form A under the Payment and Settlement Systems Regulations, 2008 through the RBI PRAVAAH portal, which is the central online window for regulatory approvals. The RBI first checks eligibility, ownership, fit and proper status of promoters, technology design, risk controls and governance. If satisfied, the RBI grants in-principle authorisation, which is the stage SIGN has now reached.
In-principle authorisation is provisional clearance valid for six months. It does not permit live operations. It allows the firm to build systems and get a System Audit Report prepared by a CERT-In empanelled auditor or qualified information systems auditor. SIGN must submit this report for assessment. The RBI then conducts a final review and issues the Certificate of Authorisation in Form B, which permits commencement of business. If the firm fails to submit the audit report in six months, the in-principle clearance lapses, though a one time extension of up to six months can be sought. A similar six month deadline applies for starting business after final authorisation.
Capital norms are strict. A new applicant must have a minimum net worth of ₹15 crore at the time of application and must reach ₹25 crore by the end of the third financial year after approval. Net worth here broadly includes paid up equity capital, compulsorily convertible preference shares, free reserves and share premium, after adjusting for losses and intangible assets. A statutory auditor certificate must prove compliance. Governance rules require professional management, data security standards such as PCI-DSS and PA-DSS, and periodic security assessments of merchant systems.
Why the Approval Matters for Small Businesses
SIGN has built its presence through assisted banking in underserved markets. Its move into online aggregation connects that physical reach with digital acceptance. A kirana store, handicraft seller or rural service provider that already uses its kiosk for cash services can now accept UPI and card payments online through the same group network.
For MOS Utility, the clearance opens a higher margin transaction business alongside its existing agency and distribution income from remittances, AePS, micro ATMs and bill payments. It also places SIGN alongside established licensed peers such as Razorpay, PhonePe, Paytm, Easebuzz and Juspay, though SIGN will need final authorisation and proven scale to compete. The separate approval received later in September 2026 for Prepaid Payment Instruments (PPI), which are wallets or cards that store prepaid value, shows the group intent to build a wider digital stack, but each activity will start only after respective final approvals.
For the wider payments market, the entry adds choice at a time when the RBI has tightened supervision through the 2025 framework. Stricter escrow use, merchant due diligence and audit trails raise compliance costs. Larger and well funded entities can absorb these costs more easily. Firms rooted in rural distribution may still find an edge if they bring new merchants from smaller towns into formal digital collections.
Key Takeaways
- Samvriddhi Inclusive Growth Network (SIGN), a subsidiary of MOS Utility Ltd, received in-principle authorisation on 22 September 2026 to operate as an Online Payment Aggregator (PA-Online).
- A payment aggregator collects customer payments on behalf of merchants and settles them later, while a payment gateway only routes transaction technology without handling funds.
- RBI licence norms require ₹15 crore net worth at application and ₹25 crore by the end of the third year, with application through the PRAVAAH portal under the Payment and Settlement Systems Act, 2007.
- In-principle authorisation is valid for six months for system building and submission of a System Audit Report, and live operations need a final Certificate of Authorisation.
- Non bank aggregators must hold customer funds in a separate escrow account with a Scheduled Commercial Bank and settle with merchants within the prescribed Tp, Ts, Td and Tr timelines.
