RBI to directly regulate entities facilitating cross border payment transactions

The Reserve Bank of India on Tuesday said all entities facilitating cross border payment transactions for import and export of goods and services will be directly regulated by it.

Such entities will be treated as Payment Aggregator-Cross Border (PA-CB), the central bank said in a circular.

"Keeping in view the developments that have taken place in the area of cross-border payments, it has been decided to bring all entities facilitating cross-border payment transactions for import and export of goods and services under direct regulation of the RBI," it said.

Currently, all Payment Aggregators (PAs), which facilitate processing of domestic transactions in online mode, are covered within the scope of RBI regulations.

Non-banks providing PA-CB services as on the date should have a minimum net worth of Rs 15 crore at the time of submitting application to the RBI for authorisation and a minimum net worth of Rs 25 crore by March 31, 2026, it said.

New non-bank PA-CBs (entities which have not commenced operations) should have a minimum net worth of Rs 15 crore at the time of submitting application and should attain a minimum net worth of Rs 25 crore by the end of the third financial year of grant of authorisation.

The circular also prescribes procedures for handling of online transactions by the PAs.

It also said banks undertaking PA-CB activity should ensure compliance with the requirements for PA-CBs by April 30, 2024.

"In respect of import and export transactions processed by PA-CBs, the maximum value per unit of goods / services sold / purchased shall be Rs 25,00,000," the circular said.