Image Source: Moneycontrol
Aditya Birla Capital Limited announced today that the Reserve Bank of India (RBI), through a letter dated 20 August 2025 and received by the company on 26 August 2025, has granted ‘In-Principle’ authorization to its subsidiary, Aditya Birla Capital Digital Limited, to operate as an Online Payment Aggregator. This authorization under the Payment and Settlement Systems Act, 2007, marks a significant development for the company as it strengthens its digital payments capabilities and extends its footprint in the fast-growing online payments ecosystem in India.
Key Highlights of the Announcement:
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The authorization is an ‘In-Principle’ approval from the RBI, allowing Aditya Birla Capital Digital Limited to operate as an Online Payment Aggregator, enabling it to facilitate electronic payments across various merchants and customers.
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This move aligns with Aditya Birla Capital’s strategic focus on enhancing its digital infrastructure and expanding its fintech services within the rapidly evolving Indian financial services sector.
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With this authorization, the subsidiary will operate under the regulatory framework provided by the Payment and Settlement Systems Act, which governs payment aggregators and payment gateways in India.
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The RBI’s approval comes amidst intensifying competition and growing demand for secure, seamless, and efficient online payment solutions across Indian retail and business markets.
Regulatory and Market Context:
The Reserve Bank of India regulates the payment aggregators market to ensure secure and transparent electronic payment services for consumers and merchants. An Online Payment Aggregator serves as an intermediary that facilitates payments from customers to merchants through various digital modes including credit/debit cards, UPI, net banking, and wallets. This in-principle authorization serves as a preliminary nod that allows the company to proceed with formal licensing processes after fulfilling RBI’s prescribed conditions.
By allowing a subsidiary to become a licensed payment aggregator, Aditya Birla Capital not only diversifies its product offerings but also positions itself strategically in a domain witnessing rapid growth, fueled by India’s increasing internet penetration and digital transaction adoption.
Implications for Aditya Birla Capital and the Ecosystem:
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The subsidiary’s authorization will enable it to integrate multiple payment options and provide a unified, user-friendly payment experience across various digital and offline points of sale.
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It will support merchants, especially micro, small, and medium enterprises (MSMEs), by providing accessible and cost-effective payment collection solutions.
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This move complements existing digital initiatives by Aditya Birla Capital, such as its omnichannel platforms for lending, insurance, and wealth management that leverage cutting-edge technology to enhance customer engagement.
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The expansion into payment aggregation aligns with the broader fintech ecosystem trend where legacy financial institutions leverage technology to remain competitive against digital-native firms like Paytm, PhonePe, and Google Pay.
Background on Aditya Birla Capital:
Aditya Birla Capital Limited is one of India’s foremost diversified financial services companies, part of the US$66 billion global Aditya Birla Group. The company operates across multiple domains including lending as a Non-Banking Financial Company (NBFC), housing finance, life and health insurance, asset management, and stockbroking. With extensive reach through over 1,600 branches, more than 200,000 agents and channel partners, and a growing digital platform user base exceeding millions, the company continuously strengthens its digital and retail financial services capabilities.
Looking Ahead:
With the RBI’s in-principle approval, Aditya Birla Capital Digital Limited can now move forward to meeting the regulatory compliances necessary for full-fledged payment aggregator operations. This development signals strong growth potential and opportunities for innovation in payment technologies under the Aditya Birla Capital umbrella. The market can expect enhanced digital payment offerings that will ease transaction experience for both merchants and customers while supporting the government’s vision of a less-cash economy.
Source: Aditya Birla Capital official announcement
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