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The Reserve Bank of India (RBI) has issued a circular on the regulation of Payment Aggregators – Cross Border (PA-CB), aimed at entities facilitating payment and settlement for online cross-border export and import transactions.
The circular comes after a draft was issued on April 7, 2022, by the Foreign Exchange Department under the Foreign Exchange Management Act (FEMA), 1999, for processing and settlement of small-value export-import payments facilitated by Online Export-Import Facilitators (OEIFs).
Taking into account stakeholder feedback on the draft and aligning the activities of OEIFs / Online Payment Gateway Service Providers (OPGSPs) with the payment ecosystem, the guidelines have been redrafted under the Payment and Settlement Systems Act, 2007. Under the new framework, entities providing cross-border payment facilitation will be regulated as Payment Aggregators – Cross Border (PA-CB), ensuring a structured and secure approach to cross-border digital payments.
[RBI]