Guidelines for linking merchants on BHIM Aadhaar by NPCI


Recently National Payments Corporation of India (NPCI) has a circular Guidelines have been issued in which for 'BHIM Aadhaar Pay' Merchants place the responsibility of verifying the details on the banks.

On BHIM basis

  • 'BHIM Aadhaar Pay' through Aadhaar authentication to merchants Enables receiving digital payments from customers at the counter.
  • it Any merchant associated with any acquiring bank on 'Bhim Aadhaar Pay' To By authenticating the customer's biometrics any Permission to accept payments from bank customers gives.
  • necessary condition
    • To be able to do this effectively, traders must Must have Android mobile or any supported device with BHIM Aadhaar Pay app And certified with USB port or Micro-ATM/POS/Kiosk/Tablet Biometric scanner must be attached.
    • customers and merchants of both Aadhaar linked to their bank account Should be.

National Payments Corporation of India (NPCI)

  • this in india Retail Payment and Settlement System for the operation of a shared organization Is.
  • this in india A strong payment and settlement infrastructure Payment and Settlement System Act to create, It is an initiative of the Reserve Bank of India (RBI) and the Indian Banks Association (IBA) under the provisions of 2007.
  • This Section 25 of the Companies Act 1956 (now Section 8 of the Companies Act 2013) Under the provisions of “Not for Profit” has been incorporated as a company.
  • Objective: For physical and electronic payment and settlement systems complete banking system in india With the aim of providing basic infrastructure to.
  • Focus: in operation Achieving greater efficiency and access to payment systems through the use of technology to broaden Innovation in Retail Payment Systems Bring in.

BHIM AADHAAR PAY – Guidelines regarding linking of merchants and standards.

NPCI has issued these guidelines to lay down key responsibilities and accountabilities of banks while managing merchants.

  • acquiring banks From time to time to yourMerchant Activity' (i.e., onboarding criteria, transaction monitoring and controls, training, evaluation of portfolio metrics, etc.) Must be monitored.
    • It is used to monitor the standard performance of traders. There is a baseline at the level.
    • Acquiring banks can use merchant due diligence both manually and digitally.
  • The acquiring bank should ensure that the following points are adequately addressed:
    • Board approved policy for merchant acquisitions
      • To implement policies that include standards to ensure quality/business operations to mitigate the risks of NPCI operated payment systems in terms of financial or reputational risk.
      • acquiring policies The acquisition must be approved by the board of directors of the bank and from time to time There should be a review.
    • Agreements with various stakeholders (as appropriate):
      • Merchant Agreement with each Merchant/Aggregator (as appropriate) prior to providing any Services.
    • Merchant Risk Assessment
      • NPCI has advice to members given that they are appropriate while providing service to the merchants Also provide the Merchant Category Code (MCC).
    • Merchant Portfolio and Risk Monitoring
      • They need to ensure that the trading criteria and prohibited merchants are followed while using BHIM Aadhaar service. Cash withdrawal transactions are not allowed at merchants.
    • merchant training
    • Third Party Agent Risk Oversight and Governance

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