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Cashfree Payments, a company specialising in banking solutions and payments, on Monday received the Reserve Bank of India’s (RBI) nod to operate as a payment aggregator-cross border (PA-CB) nearly a year after the banking regulator issued a circular on the regulation of such entities.
The Bengaluru-based company is one of the first non-banks to receive the PA-CB licence, according to the RBI’s website.
“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,” a Cashfree Payments spokesperson said in a statement.
PAs-CB are entities that facilitate cross-border payment transactions for the import and export of permissible goods and services in the online mode, according to the RBI.
The RBI categorises PA-CBs as 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 received approval to operate as a PA-CB-E&I on Monday.
In a circular issued in October 2023, the RBI had mandated minimum net worth requirements for non-banks to operate as PA-CBs.
This included a minimum net worth of Rs 15 crore at the time of the application to the regulator, and a Rs 25 crore net worth by March 31, 2026.
New non-banks are required to attain a minimum net worth of Rs 25 crore by the end of the third financial year of the grant of authorisation.
First Published: Jul 22 2024 | 8:52 PM IST
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