Published: 18 September 2025Business StandardEconomy
PhonePe Receives Final RBI Approval to Operate as Online Payment Aggregator
PhonePe received final authorization from the Reserve Bank of India on September 19, 2025, to operate as an online payment aggregator, more than two years after initial in-principle clearance. This enables PhonePe to expand its merchant network with focus on SMEs.
PhonePe has over 65 crore registered users, 4.5 crore+ merchant acceptance network, and processes 36 crore+ transactions daily with annualized TPV over ₹150 lakh crore. It joins 50+ firms with full RBI payment aggregator licences, including Pine Labs, Easebuzz, BharatPe, and PayU.
0Mains angle
Q: Discuss the regulatory significance of RBI granting final payment-aggregator authorisation to PhonePe for India's digital payments ecosystem.
Answer (50 words):
On September 19, 2025, RBI granted PhonePe final online payment-aggregator authorisation after two-year in-principle clearance. With over sixty-five crore users, four-and-a-half crore merchants and thirty-six crore daily transactions exceeding 150 lakh crore rupees annualised, full licensing expands merchant onboarding especially for small enterprises, deepening India's regulated digital-payments architecture significantly further.
6-axis classification
CoverageNationalSubjectEconomicExamBasic Computer Instructor · CET Graduation · CET Senior Secondary · EO/RO · LDC · Mahila Supervisor · Patwar · PTI · RAS · REET · RPSC SI · School Lecturer · Senior Computer Instructor · Senior Teacher · UPSC · Vanpal · PrelimsSourceBusiness Standard
Practice MCQ from this story
SolveTap an option below. Correct or incorrect feedback appears instantly.
Linked questionMedium
As of February 2026, India's UPI was live in over how many countries?
Explanation · Correct answer DAs per PIB, UPI was live in over eight countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius and Qatar.
Frequently asked questions
What RBI approval did PhonePe receive as an Online Payment Aggregator?
**PhonePe received final RBI authorization on September 19, 2025, to operate as an online payment aggregator, over two years after initial in-principle clearance**. PhonePe received final RBI approval to operate as an Online Payment Aggregator, enabling it to onboard merchants for digital payments.
What is a Payment Aggregator and why does it need RBI approval?
**A Payment Aggregator (PA) is an entity that facilitates online transactions** between merchants and customers. RBI requires PA licence for regulatory compliance. **Enables PhonePe to expand its merchant network with focus on SMEs**
What is PhonePe and what services does it provide in India?
**PhonePe is one of India's largest digital payment platforms**, offering UPI payments, insurance, mutual funds, and merchant services. **PhonePe has over 65 crore registered users, 4.5 crore+ merchant acceptance network, and processes 36**
How does PhonePe's PA licence benefit merchants and consumers in India?
**Annualized TPV over ₹150 lakh crore; joins 50+ firms with full RBI payment aggregator licences including Pine Labs, Easebuzz, BharatPe, and PayU**. PA status allows PhonePe to directly onboard merchants, expand its ecosystem, and offer more integrated payment solutions.
What is UPI and how has it transformed digital payments in India?
**UPI (Unified Payments Interface) is India's real-time payment system** that processed over 11 billion transactions monthly in 2025. **PhonePe received final authorization from the Reserve Bank of India on September 19, 2025, to operat**
