RBI has issued a circular dated 14th June, 2021 wherein they have barred investments from jurisdictions which are non FATF compliant into Payment System Operators (PSOs). Its not a complete ban but they are not authorised to give significant influence to investors from FATF non compliant jurisdictions. A threshold of 20% of the voting power or potential voting power has been established to distinguish significant influence.
PSOs who already have investments from FATF non compliant jurisdictions may continue with the said investments and also seek fresh investments from the same, in order to maintain continuity of business operations.
The circular can be found here