How collection works
Payment aggregators in government collection
Short answer
- Definition source
- Reserve Bank of India Directions, 15 September 2025 1
- Who needs a licence in India
- Non-bank entities. Banks do not need authorisation 1
- Net worth in India
- ₹15 crore at application, ₹25 crore by end of third financial year 1
- Customer funds in India
- Separate escrow account at a scheduled commercial bank 1
- Tanzania joining route
- Letter to the Ministry of Finance and Planning, procurement, standard contract 2
What an aggregator is
The Reserve Bank of India Directions of 15 September 2025 define a payment aggregator as "an entity that facilitates aggregation of payments made by customers to the merchants through one or more payment channels" 1. The aggregator then settles the funds to the merchant 1.
The Directions split aggregators into physical (PA-P), online (PA-O) and cross-border (PA-CB) types 1. They are issued under the Payment and Settlement Systems Act, 2007 1.
How regulators control aggregators
- A bank does not need authorisation to run aggregator business. A non-bank must apply to the Reserve Bank of India 1.
- A non-bank must hold funds collected for merchants in a separate escrow account with a scheduled commercial bank 1.
- Day-end escrow balances must not fall below the amount collected and not yet settled 1.
- Settlement timelines follow the agreement between the aggregator and the merchant, which must state them transparently 1.
- Existing physical-only aggregators had to apply by 31 December 2025 or wind up by 28 February 2026 1.
How aggregators connect to government systems
Tanzania's GePG treats banks and mobile operators as payment service providers. A provider writes to the Permanent Secretary of the Ministry of Finance and Planning, attends a briefing session, goes through procurement and signs a standard contract before live integration 2.
A 2020 GSMA industry report says Rwanda routes online and offline payments through an aggregated gateway linking financial institutions 5. The same report says Cambodia built a standard API for providers and banks to connect 5.
Timing and float
The IMF says banks should transfer revenue to the TSA main account on the same day 3. Its 2011 note says paying banks through interest-free float is not transparent 6.
PEFA gives score A where most central government revenue is paid straight into treasury-controlled accounts or transferred daily 4. Any intermediary that holds funds between the payer and the treasury adds a step that these standards measure.
What auditors have found
Tanzania's Controller and Auditor General reported on 30 March 2026 that the T-Pesa platform of the Tanzania Telecommunications Corporation was not integrated with commercial banking systems. The report said this limited automated transaction processing and reconciliation 7.
Common questions
Is a payment aggregator the same as a payment gateway?
Not in India's rules, which define the aggregator by its role of collecting and settling funds to merchants 1. GePG is a government system that links channels 2.
Do aggregators need a licence?
In India, non-bank aggregators need Reserve Bank of India authorisation. Banks do not 1.
Where does an aggregator keep customer money?
In India, in a separate escrow account with a scheduled commercial bank 1.
How does a provider join Tanzania's GePG?
Through a letter to the ministry, procurement and a standard contract 2.
Rules and charges change. Check the official source linked on this page before you pay or travel. Spotted an error? Email [email protected].
Sources
- Reserve Bank of India: Reserve Bank of India (Regulation of Payment Aggregators) Directions, 2025, RBI/DPSS/2025-26/141 (15 September 2025)
- Ministry of Finance, Tanzania: GePG frequently asked questions (accessed 24 October 2026)
- IMF, Sailendra Pattanayak and Israel Fainboim: Treasury Single Account: Concept, Design, and Implementation Issues, Working Paper WP/10/143 (May 2010)
- PEFA Secretariat: PI-20 Accounting for revenue, PEFA 2016 framework (accessed 24 October 2026)
- GSMA, industry association report: Digitalising person-to-government payments, by Nicolas Fichers and Lamia Naji (October 2020)
- IMF Fiscal Affairs Department: Treasury Single Account, Technical Notes and Manuals 11/04, by Sailendra Pattanayak and Israel Fainboim (August 2011)
- National Audit Office of Tanzania: Annual Report of the Controller and Auditor General on the Audit of Information Systems, FY 2024/25 (30 March 2026)
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