Millions of small and large businesses across India could face trouble with digital payments if they fail to complete their re-KYC on time.
The September 15, 2026 deadline set by the Reserve Bank of India (RBI) for payment aggregators is getting closer.
Merchants who do not complete the required verification could see their online payment and digital collection services stopped.
The issue is especially important for small shops and businesses that depend heavily on UPI QR codes to receive payments.
Why Is Re-KYC Becoming a Big Challenge?
The RBI changed its payment aggregator rules in September 2025.
Under the updated rules, payment companies must verify much more than just basic documents.
They have to check details about the merchant’s business, ownership and background.
For merchants joining the digital payment system from January 1, 2026, these verification requirements were already applicable.
Now, older merchants have to complete the process by September 15.
The problem is that many businesses are still struggling to finish the paperwork and verification.
Physical Verification Is Making Things Even Harder
This time, simply uploading documents online may not be enough.
In many cases, payment companies must physically verify the merchant’s business location.
A company representative may also need to visit the location and check original documents.
This has created a major operational challenge for payment companies.
Their employees may have to travel to different cities, towns and villages to complete these checks. As a result, both the time and cost of completing re-KYC have increased.
Small Businesses Are Facing the Biggest Problem
Small shops, individual traders and informal businesses are among those facing the most difficulty.
Many of these businesses do not have documents that larger companies normally possess, such as incorporation papers, detailed ownership records, tax documents or formal business address proof.
Some merchants are also finding terms such as beneficial ownership difficult to understand.
This is making the re-KYC process particularly challenging for businesses that have only recently started using digital payments.
Payment Companies Are Now Helping Merchants
Payment aggregators are doing more than simply collecting documents.
Many are now helping merchants understand which documents they need, correcting incomplete paperwork and explaining ownership-related requirements.
Companies are also following up with merchants who have not completed the process.
However, with the September 15 deadline approaching quickly, the pressure is increasing.
What Happens If Re-KYC Is Not Completed?
This is the biggest concern for merchants.
If the required verification is not completed within the deadline, their digital payment collection services could be affected or stopped.
For a small shop that depends on UPI payments every day, even a temporary disruption could create serious problems.
With millions of businesses relying on digital payments, the coming days will be crucial. Merchants who have not completed their re-KYC should check with their payment provider and finish the required verification before the deadline.