RBI Payment System Authorisation Framework and PRAVAAH Compliance 2025-26

The RBI released its 2025-26 Payment System Authorisation (PA) and Payments Regulatory Architecture and Validation Assessment for Authorisation and Harmonisation (PRAVAAH) compliance roadmap, establishing capital requirements for Payment System Operators (PSOs), perpetual authorisation validity, and cooling-off provisions for entities seeking re-authorisation. The framework specifies minimum capital thresholds that PA-PSO applicants and existing operators must maintain, sets timelines for cooling-off periods between failed and subsequent authorisation applications, and outlines the technical and operational standards under PRAVAAH. Payment service providers, fintech payment platforms, and banks operating proprietary payment systems must ensure compliance with the prescribed capital adequacy and governance norms. The directive clarifies that authorisation granted under the framework does not require periodic renewal if capital and operational standards are continuously maintained. Entities should conduct a gap analysis against capital requirements, governance structures, and system resilience standards mandated by the 2025-26 roadmap and strengthen technical infrastructure accordingly.