Fintech

Cashfree Payments Secures RBI Licence as Payment Aggregator-Cross Border

• ByStartupStory     |    July 23, 2024

Cashfree Payments, a leading provider of banking solutions and payment services, has announced receiving approval from the Reserve Bank of India (RBI) to operate as a Payment Aggregator-Cross Border (PA-CB). This milestone makes Cashfree Payments one of the first non-banking entities to obtain this licence, reflecting the company’s commitment to expanding its payment services across borders.

In a statement, a spokesperson from Cashfree Payments highlighted the strategic importance of this approval: “With the Payment Aggregator-Cross Border (PA-CB) licence, we are now well-positioned to support global businesses and globally regulated entities collecting payments in India. The licence also enables us to offer Indian exporters and freelancers cross-border payment solutions.”

The RBI defines PA-CBs as entities that facilitate cross-border payment transactions for the import and export of permissible goods and services in the online mode. The regulator categorises PA-CBs into three types: Export only PA-CB (PA-CB-E), Import only PA-CB (PA-CB-I), and Export and Import PA-CB (PA-CB-E&I). Cashfree Payments has been authorised to operate as a PA-CB-E&I, enabling it to manage both export and import payment transactions.

This regulatory approval follows nearly a year after the RBI issued a circular on the regulation of such entities, aimed at strengthening the framework for cross-border payment facilitations. In October 2023, the RBI mandated minimum net worth requirements for non-banks to operate as PA-CBs, stipulating a minimum net worth of Rs 15 crore at the time of application and Rs 25 crore by March 31, 2026. New non-banking entities must achieve a minimum net worth of Rs 25 crore by the end of the third financial year following the grant of authorisation.

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