The Reserve Bank of India (RBI) has brought under its direct regulation all entities facilitating cross-border payments for import and export of goods and services.
- Such entities will be termed as Payment Aggregator-Cross Border (PA-CB).
Key points
- PAs-CB facilitate cross-border online payments for import and export of permissible goods and services.
- All non-bank PA-CBs (existing as on the date of circular) must register with the Financial Intelligence Unit-India (FIU-IND).
- The RBI has prescribed networth criteria for non-banks providing PA-CB services ,as per its circular ‘Regulation of PA – Cross Border’ circular’..
- Non-banks providing PA-CB services as on the date of circular should have a minimum networth of ₹15 crore at the time of application for authorisation and a minimum networth of ₹25 crore by March 31, 2026.
- Authorised Dealer (AD) Category-I banks do not require separate approval for PA-CB activity.
- Non-banks providing PA-CB services must apply to the RBI for authorisation by April 30, 2024.
- Authorisation for PA-CB activity may be sought for one of three categories — export-only PA-CB, import-only PA-CB, and export and import PA-CB.
