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The Reserve Bank of India (RBI) said an entity acting as an Online Export-Import Facilitator (OEIF) can be from India or overseas.
Further, foreign entities, desirous of operating as OEIF shall open an office in India before operationalising the contract with any Authorised Dealer (AD) bank, according to draft guidelines on ‘Processing and Settlement of small value Export and Import related payments’ facilitated by OEIFs.
OEIFs, earlier referred to as Online Payment Gateway Service Providers (OPGSPs), are Payment Aggregators (PA) or Payment Gateways (PG) that facilitate online remittances for small value export and import of goods and digital products through e-commerce taking place in compliance with instructions given in the draft circular.
An OEIF facilitating import transactions would be acting as a PA. OEIF shall be a company in India established under Indian Companies Act, 2013. It shall also be required to take authorisation under Payment and Settlement Systems Act 2007.
In case of export transactions, the OEIF shall be acting as a Payment Gateway and shall comply with the baseline technology-related recommendations.
Under the contract between OEIF and the AD bank, the entire work related to handling of funds shall be undertaken by the AD bank, per the draft circular.
Existing OEIFs having contract with AD banks shall apply for required authorisation from Department of Payment and Settlement System (DPSS) in terms of the extant guidelines within a period of 90 days from the date of issuance of the final circular.
They may, however, continue to operate under the existing framework and guidelines under Foreign Exchange Management Act, till disposal of the application by DPSS.
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