The Reserve Bank of India (RBI) on Tuesday issued rules to regulate entities facilitating cross-border export and import transactions.
The central bank said that non-banks that provide cross-border payment aggregator (PA) services will have to apply for an authorisation from the regulator by April 30, 2024.
Further, the apex bank also divided the authorisation of entities across three broad categories of activity including – export, import and PAs undertaking both activities.
“The entities, currently carrying out this activity should ensure adherence to the guidelines on governance, merchant onboarding, customer grievance redressal and dispute management framework, baseline technology recommendations, security, fraud prevention and risk management framework within a period of three months from the date of this circular,” the RBI said in its circular.
Also, a single authorisation will be required by a non-bank to undertake PA and PA cross-border (PA-CB) activity, the banking regulator said.
In February this year, the RBI had provided in-principle approval to almost 32 entities – including payment arms of US technology majors Amazon and Google, along with Reliance Payment Solutions – to operate as online payment aggregators. It had returned the application of PayU and Paytm, among others.
The RBI also paused new customer onboarding for payment gateway service providers Razorpay and Cashfree.
The regulator also stated that non-banks providing PA-CB services shall 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.
PAs undertaking cross-border transactions will also have to submit a certificate from their statutory auditor to evidence the net worth.
On failing to comply with the net worth requirement, entities will have to wind up PA activity for cross-border transactions by July 31, next year.
In respect of import and export transactions processed by cross-border PAs, the maximum value per unit of goods and services sold or purchased shall be Rs 25 lakh, the RBI said.
