Payment Aggregator and Gateway

Regulation of Payment Aggregators (PAs) 

• The activities of non-bank PAs are regulated in entirety by the RBI under the Payment and Settlement Systems Act, 2007 (PSSA).
• Authorisation: Non-bank PAs require authorisation from the RBI to operate under the PSSA. Banks do not require a separate authorisation to carry out PA business. 
• A non-bank PA must be a company incorporated in India under the Companies Act, 2013.
• Net-Worth Requirement:
  • PAs must have a minimum net-worth of ₹15 crore at the time of application for authorisation. 
  • They must attain a minimum net-worth of ₹25 crore by the end of the third financial year of the grant of authorisation and must be maintained on an ongoing basis thereafter. 
• Foreign Investment: 100% FDI under automatic route. Entities having Foreign Direct Investment (FDI) must be guided by the Consolidated FDI Policy of the Government of India and relevant FEMA. 
• Promoters and directors must satisfy the RBI’s ‘fit and proper’ criteria, which include having a record of fairness, integrity, and good reputation. 
• Any takeover, acquisition of control, or change in the management of a non-bank PA must adhere to RBI’s prior approval requirements. 
• PAs must undertake Customer Due Diligence (CDD) of their merchants in accordance with RBI’s Master Direction on KYC. 
• Non-bank PAs must register with the Financial Intelligence Unit-India (FIU-IND) and meet all reporting requirements. 
• PAs must undertake a background and antecedent check of the merchants to prevent malafide intentions, or selling prohibited products. 
• Escrow Account: Non-bank PAs must maintain the funds collected on behalf of merchants in a separate escrow account with a Scheduled Commercial Bank (SCB) in India. 
• Settlement Timelines: For domestic PAs where the merchant is responsible for delivery, the payment to the merchant shall be not later than on the day after the date of delivery confirmation (Td+1). 
• PAs must put in place a Board-approved Information Security Policy and implement security measures. 
• PAs shall not give an option for ATM PIN as a factor of authentication for card-not-present transactions. 
• PAs shall not place limits on transaction amount for a particular payment mode; this responsibility lies with the issuing bank or entity (e.g., ₹1 lakh per day for some banks).
  • However, the maximum transaction value is capped at ₹25 lakh for both inward (incoming) and outward (outgoing) cross-border payments.

Regulations for Payment Gateways (PGs)

• Regulatory Status: PGs are primarily considered ‘technology providers’ or ‘outsourcing partners’ of banks or non-banks and are not required to seek separate authorisation from the RBI under the PSSA. 
• While PGs are not fully regulated like PAs, they are recommended (as a measure of good practice) to adhere to the baseline technology-related recommendations.
• Outsourcing Guidelines: In the case of a bank PG, the RBI’s guidelines on ‘Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks’ are applicable. 

Neurotechnology 

• Neurotechnology refers to any technology that interacts with the brain and nervous system to understand, monitor, record, stimulate, or influence neural activity. 
• It acts as an interface between the biological nervous system and external devices or systems.  These technologies can range from completely non-invasive devices (like a skullcap worn on the head) to semi-invasive or fully invasive implants requiring surgery. 
• Medical and Restorative Applications
  • Neural Prosthetics: Devices that replace or restore lost sensory, motor, or cognitive functions. 
    • Cochlear Implants: Restore hearing in individuals with profound hearing loss.
    • Brain-Computer Interfaces (BCIs) allow paralyzed patients to control robotic arms, cursors, or wheelchairs using only their thoughts. 
  • Neuromodulation/Neurostimulation: Technologies that deliverelectrical or magnetic pulses to regulate abnormal brain function.
    • Deep Brain Stimulation (DBS): Used to treat movement disorders like Parkinson’s disease and essential tremor, and is also being explored for mood disorders. 
  • Diagnostics and Research: Tools for recording and imaging brain activity.
    • Electroencephalography (EEG): Non-invasive measurement of the brain’s electrical activity. 
    • Functional Magnetic Resonance Imaging (fMRI): Maps brain activity by detecting changes in blood flow.
• Non-Medical/Enhancement Applications
  • Cognitive Enhancement: Potential to improve focus, memory, and learning ability, often using non-invasive stimulation. 
  • Gaming & Entertainment: Creating more immersive and intuitive user experiences by allowing control of games with thoughts. 
  • Military & Defense: Improving decision-making speed, accuracy, and situational awareness for personnel. 

Concerns and Ethical Issues

• It collects sensitive “brain data” (thoughts, emotions, cognitive states), which could be misused by companies for neuromarketing or by governments for surveillance. Hence, a push for the establishment of “Neuro-rights,” such as the right to mental privacy. 
• Technologies that can “write” into the brain via stimulation or external influence could potentially modify a person’s thoughts, emotions, or decision-making processes, thus undermining their cognitive liberty, and sense of self. 
• Advanced neurotechnologies (especially those for cognitive enhancement) could exacerbate social inequalities by only being accessible to the wealthy, creating a divide between augmented and non-augmented individuals. 
• Invasive neurotechnologies could potentially be hacked, leading to unintended or malicious control of the device and, consequently, the user’s motor function or neural activity. 

Electoral Officers

• Two deaths and multiple complaints from Booth Level Officer (BLOs) of “excessive workload and unreasonable demands and targets” have hit the Special Intensive Revision (SIR) of electoral rolls in at least three states Kerala, Tamil Nadu and Rajasthan. 

The Electoral Officers/Commissions in India 

Aeronautical Message Handling System (AMHS)

• A technical glitch was discovered in the Automatic Message Switching System (AMSS) at Delhi’s Indira Gandhi International Airport on November 6, forcing the Air Traffic Control (ATC) system to process flight plans manually for over a day.

• In response, the Airport Authority of India (AAI) decided to fast-track the operationalisation of the new system, the Aeronautical Message Handling System (AMHS).
• The AAI now plans to make the new system operational by January 2026 against the original timeline of April 2026.

Comparison of Systems: AMSS vs. AMHS

United Nations Convention against Cybercrime or Hanoi Convention

• The Supreme Court (SC) underlined the importance of international cooperation in combating cybercrimes.
• The bench, hearing a ‘suo motu’ case on digital arrest fraud, directed the Centre to take a call on ratifying the United Nations Convention against Cybercrime.
• India has not yet signed or ratified the treaty.

• It is the first comprehensive global treaty addressing this issue.
• The primary goal is to provide States with a comprehensive range of measures to prevent and combat cybercrime.
• It also aims to strengthen international cooperation in the sharing of electronic evidence for serious crimes.
• The Convention is organized into nine chapters, which offer a comprehensive approach to the problem of cybercrime.
• The treaty includes essential human rights safeguards.
• It resolves technical and legal challenges by adjusting traditional criminal investigation methods to the Information and Communication Technology (ICT) environment and enhancing international cooperation.
• Conference of the States Parties (CoSP): This body will convene periodically after the Convention enters into force to improve cooperation, build capacity, and review its implementation.
• Ad Hoc Committee (AHC): This committee approved the draft convention in August 2024 and is mandated to prepare the CoSP rules of procedure and negotiate a draft supplementary protocol addressing additional criminal offences.
• The United Nations Office on Drugs and Crime (UNODC) serves as the secretariat for both the AHC and the future CoSP.
• UNODC’s Global Programme on Cybercrime provides technical assistance and training to Member States to build capacity for the prevention, detection, investigation, and prosecution of cybercrime.

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