The Reserve Bank on Thursday brought all entities facilitating cross-border payment transactions for the import and export of goods and services under its direct regulation.
RBI has decided to regulate entities facilitating payment and settlement for online cross-border export /import transactions as Payment Aggregators – Cross Border (PA-CB) under the Payment and Settlement Systems Act, the central bank said in a circular.
"Keeping in view developments 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 the direct regulation of the RBI," it said.
Such entities will be treated as Payment Aggregator-Cross Border (PA-CB), the RBI said.
According to the circular, non-banks providing PA-CB services should have a minimum networth of Rs 15 crore at the time of submitting applications to the RBI for authorisation and a minimum networth of Rs 25 crore by March 31, 2026.
New non-bank PA-CBs (entities which have not commenced operations yet) should have a minimum networth of Rs 15 crore at the time of submitting applications to the RBI for authorisation and should attain a minimum networth of Rs 25 crore by the end of the third financial year of grant of authorisation.
"All existing non-bank PA-CBs that are unable to comply with the networth requirement or do not apply for authorisation within the stipulated time frame, shall wind-up PA-CB activity by July 31, 2024," the circular said.
In respect of import and export transactions processed by PA-CBs, the RBI said the maximum value per unit of goods or services sold should be Rs 25,00,000.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.