SAMACHAR - MARCH, 2025  
 
 

PCI Submission to PMO, RBI and DFS on Introduction of MDR on UPI and RuPay Debit Cards

IAMAI’s Payments Council of India (PCI) submitted a letter to the Prime Minister’s Office (PMO), the Reserve Bank of India (RBI) and the Department of Financial Services regarding the recently released incentives and the reconsideration of the Zero Merchant Discount Rate (MDR) for UPI and RuPay debit card transactions. The PCI acknowledged the government's support for the sector but raised concerns underlining the inadequacy of the INR 1,500 crore allocated for incentives, which covers only a fraction of the operational costs. PCI also proposed the introduction of a nominal MDR for RuPay debit cards for all merchants and reasonable MDR of 0.3% for UPI only for large merchants. The letter addressed the critical issues for the sector's financial stability.
 
 
IAMAI Submission to MeitY on Draft Digital Personal Data Protection Rules, 2025
IAMAI made a submission to the Ministry of Electronics and Information Technology (‘MeitY’) on its Draft Digital Personal Data Protection Rules, 2025 (‘Draft Rules’). The submission expressed concerns that compliance with the DPDP Act, and the Draft Rules would demand significant financial and technical resources which start-ups and MSMEs do not possess. Requiring smaller organisations to divert resources away from growth and innovation would create an uneven playing field for start-ups.

IAMAI also underlined that data localisation mandates might restrict Indian companies from accruing the benefits of free flow of data and run counter to India’s ambition of becoming a global data and AI leader. Many ambiguities that continue to persist in India’s data protection framework, including most notably around the mechanisms to obtain verifiable parental consent and the broad criteria for the government to designate certain organisations as Significant Data Fiduciary, were also highlighted.
 
 
Submission to Bureau of Indian Standards on E-Commerce Principles and Self-Governance
The Internet and Mobile Association of India (IAMAI) made a submission to the Bureau of Indian Standards (BIS) on its E-commerce Principles and Guidelines for Self-Governance (Draft Standard). The submission noted that the Draft Standard overlaps and was in conflict with multiple existing laws, including the Information Technology Act, 2000 (IT Act) and the Consolidated FDI Policy. IAMAI also noted that the obligations contained within the Draft Standard fundamentally dilute the intermediary protections afforded to online marketplace under the IT Act which effectively shifts an online marketplace’s role from an intermediary to an active participant.

IAMAI urged the BIS to avoid duplicating existing regulations and highlighted the need for a more balanced and innovation friendly approach that fosters ease of doing business while ensuring a level playing field between online and offline businesses.
 
 
PCI-FCC Joint Submission to DFS on Draft DPDP Rules
Two councils of the IAMAI, The Payments Council of India (PCI) and the Fintech Convergence Council (FCC), made a joint submission on the Draft Digital Personal Data Protection (DPDP) Rules to the Department of Financial Services’ (DFS). The submission highlighted key industry concerns and provided recommendations, from a financial sector standpoint, to ensure effective implementation while balancing regulatory objectives with operational feasibility.
 
 
PCI Submission to DFS, RBI on Lien Marking
The Marchant Aggregators and Acquirers Committee of the PCI made a representation to the Department of Financial Services (DFS), Government of India, and the Reserve Bank of India, highlighting challenges with indiscriminate lien marking of the nodal/escrow accounts of the Payment Aggregators. The submission requested for a framework to prevent such steps disrupting services and operations of payments aggregators due to lien marking of these accounts.
 
 
PCI Submission to RBI on Audit Standardisation
The Marchant Aggregators and Acquirers Committee of the PCI submitted to the Reserve Bank of India (RBI) a draft framework to standardize and consolidate different audit requirements for PAs including the Audits mandated through bank partnerships.
 
 
PCI Representation IRDAI on Master Circular on Protection of Policyholders' Interests
The PCI’s Card Networks Committee made a representation to the Insurance Regulatory and Development Authority of India (IRDAI) regarding the Master Circular on Protection of Policyholders' Interests issued on September 5, 2024. The Committee made various recommendations and sought clarifications on key regulatory changes impacting insurance premium payments.
 
 
Submission to DEA on Implementation of MDR on PPI for UPI
The PCI’s Prepaid Payment Issuers Committee (PPI) Committee submitted a letter to the Department of Economic Affairs (DEA), Government of India, highlighting industry perspectives on the delayed implementation of Interchange for PPI on UPI transactions. The submission underlined the potential of PPIs in enhancing digital payment adoption among diverse user segments, including teenagers, homemakers, and blue-collar workers. The committee reiterated the importance of timely implementation to ensure continued innovation and sustainability in the sector.
 
 
Representation to RBI on Strengthening Payments Bank Model
The PCI’s Payments Bank Committee made a representation to the Reserve Bank of India (RBI) on several key enhancements to strengthen the payments bank model. The committee proposed allowing Payments Banks to offer small ticket lending up to Rs. 5 lakhs, expanding their liability product portfolio to include fixed and recurring deposits, and enabling them to provide technology and platform services to other financial institutions. These recommendations aim to enhance the role of Payments Banks in driving financial inclusion, particularly for underserved communities.
 
 
PCI, FCC Members’ Meeting with RBI Governor
Members of the PCI and the FCC met with the Reserve Bank of India (RBI) Governor Shri Sanjay Malhotra in Mumbai on March 5, 2025. This meeting was held as part of the central bank's ongoing engagement with fintech and payment ecosystems, recognising the key role that the fintechs and the payment system players play in the growth of India’s financial system and economy.
 
 
PCI, FCC Members Attend RBI Finquiry
The RBI’s monthly interaction with representatives of the fintech industry, Finquiry, for the month of March was scheduled on March 19, 2025. Members of the PCI and the FCC attended it. The discussion provided a platform for fintechs to seek clarity and discuss fintech-related queries directly with RBI officials.
 
 
PCI Meeting with IBA on Chargeback Fraud submission
The Marchant Aggregators and Acquirers Committee of the PCI participated in a working group meeting with the Indian Bank’s Association (IBA) on chargeback fraud submission made by PCI on March 20, 2025.  The PCI had previously submitted a consolidated feedback and recommendations from PAs and held a joint consultation between PAs and Payments Network on these recommendations.
 
 
PCI’s Payments Bank Committee Meeting with DFS on Revenue Generation Challenges and Digital Financial Inclusion
The PCI’s Payments Bank committee met with the Department of Financial Services (DFS), Government of India, to discuss challenges in revenue generation and digital financial inclusion. Key recommendations made by the Committee included allowing secured micro-loans, expanding deposit options, and increasing account balance limits. It was highlighted that the payments banks were well-positioned to serve India's unbanked population with a cost-efficient model. The committee requested policy changes to support their evolution into digital banks.
 
 
PCI’s Unified Payments Interface Committee Meeting on UPI Meta Protocol
PCI’s Unified Payments Interface Committee organized a joint meeting between TPAPs and Pas on the UPI Meta Protocol, on March 6, 2025. The industry sought clarity on the implications of the protocol and highlighted that no formal circular from NPCI had been issued to a lot of stakeholders. The PCI reached out to the National Payments Corporation of India (NPCI) as per the cross-committee discussion. Multiple interactions have been held on the issue between the NPCI and industry representatives.
 
 
PCI’s International Remittance Committee Chairs Meet Senior Officials of MeitY, Ministry of Commerce and FIU-IND
The PCI’s International Remittance Committee Chairs Mr Nath Parameshwaran, Director, Corporate Affairs, India and South Asia, PayPal and Mr Partha Sinha, Regional Compliance Lead, Asia, Wise held meetings with Shri Deepak Goyal, Senior Director, Ministry of Electronics and Information Technology (Meity); Shri Dr Rupanjali Karthik, Director, Ministry of Commerce and Shri Veluswamy Ilancheliyan, Deputy Director, Financial Intelligence Unit - India (FIU-IND). The meetings were organised by the PCI on March 13, 2025.
 
 
Personal Remittances Working Group Meeting
The PCI organized a working group meeting under the International Remittance and Trade Committee on March 7, 2025. The discussion identified key areas for the working group, and the PCI circulated draft notes on two identified agendas: MTSS and AD-II, and Platform digitally transforming traditional AD-II and money changing functions with members for review for final representations.
 
 
PCI Inducted into LRS Matters Taskforce Under FSB
The PCI has been inducted into the Legal, Regulatory, and Supervisory (LRS) Matters taskforce under the Financial Security Board (FSB). The Council will be represented by Mr. Nath Parameshwaran, Chair, IRT Committee in the taskforce.
 
 
PCI-FCC Knowledge Session on Data Security and Compliance in IT Asset Disposal
The FCC and the PCI, in collaboration with the Sustainable Electronics Recycling International (SERI), organized a knowledge Session on Data Security and Compliance in IT Asset Disposal: Safeguarding the Fintech & Payments Ecosystem on March 20, 2025. This session was addressed by Dr. Sandip Chatterjee, Senior Advisor, SERI, and aimed to raise awareness about data sanitization and emphasize the importance of a safe and compliant IT asset disposal framework. More than 80 industry professionals participated in the session.
 
 
DPDP Rules Knowledge Series: Impact of DPDP Rules on the Insurance Ecosystem
The FCC’s Insurnce Committee, in collaboration with Ernst & Young LLP hosted the final segment of its DPDP Rules Knowledge series on the Impact of the Digital Personal Data Protection (DPDP) Rules on the Insurance Ecosystem on 24th March 2025. The session was addressed by Mr. Samir Shah, Partner at Ernst & Young LLP and more than 50 industry professionals took part in it.
 
 
FCC-PCI Knowledge Session on Data Security & Compliance in IT Asset Disposal
The FCC and the PCI, in collaboration with Sustainable Electronics Recycling International (SERI), organized a knowledge Session on Data Security & Compliance in IT Asset Disposal: Safeguarding the Fintech & Payments Ecosystem on 20th March 2025.

This session was addressed by Dr. Sandip Chatterjee, Senior Advisor at SERI and aimed to raise awareness about data sanitization and emphasize the importance of a safe and compliant IT asset disposal framework. More than 80 industry professionals participated in the session.
 
 
PCI Webinar on PCI DSS V4.0
The PCI organised a webinar on the latest updates in PCI DSS V4.0 on March 21, 2025. Mr. Nitin Bhatnagar, Regional Director, India, South Asia and Middle East, PCI Security Standards Council (SSC), was the key speaker at the webinar. He addressed industry concerns and queries on the latest development to enable efficient compliance with the updated directives under PCI DSS. Over 130 participants across the digital payment ecosystem of India joined the webinar.

This session was addressed by Dr. Sandip Chatterjee, Senior Advisor at SERI and aimed to raise awareness about data sanitization and emphasize the importance of a safe and compliant IT asset disposal framework. More than 80 industry professionals participated in the session.
 
 
FCC and NSE Creative Awareness Campaign
The FCC in collaboration with the NSE has been campaigning to spread awareness to small retail investors enabling them to make informed investment decisions. This campaign went live on 15th April 2024. Several member participants including Paytm Money, ICICI Securities, Fintoo, Experian, LXME and Stockgrowth participated in this.

The campaign is in its twelfth round of creative initiatives. The message for March was: “Your Data is Valuable! Protect it by avoiding unverified public Wi-Fi. Cybercriminals are always on the lookout! Always double-check before connecting!” This session was addressed by Dr. Sandip Chatterjee, Senior Advisor at SERI and aimed to raise awareness about data sanitization and emphasize the importance of a safe and compliant IT asset disposal framework. More than 80 industry professionals participated in the session.
 
 
DAC Organizes Meeting Between CBC and News Publishers
IAMAI’s Digital Advertising Council (DAC) organised a meeting between the Central Bureau of Communication (CBC), under the Ministry of Information & Broadcasting, and several news publishers such as the India Today Group, the Indian Express and Jagran New Media. The meeting discussed the following issues: a) news publishers’ role as a pillar of public interest and in countering misinformation, b) clear distinction between publishers and aggregators in government advertising, and c) streaming and advertisement integrations as pre-stitches.

The CBC officials agreed on the necessity for taking further steps with regard to the distinction between publishers and aggregators and in streaming video ads. The DAC will collate industry suggestions on the same and submit them to the CBC. This session was addressed by Dr. Sandip Chatterjee, Senior Advisor at SERI and aimed to raise awareness about data sanitization and emphasize the importance of a safe and compliant IT asset disposal framework. More than 80 industry professionals participated in the session.
 
 
DAC Affiliate Sub-Committee Discusses Publication of D2C Knowledge Book
The DAC’s Affiliate Sub-committee meeting was held on March 11, 2025. The meeting discussed designing a D2C knowledge book where affiliate marketing companies would share their D2C case studies, which will be published in August 2025.