RBI guideline on the Regulation of Payment Aggregators – Cross Border (PA - Cross Border)

1. Scope of Regulation: The RBI circulars provide comprehensive guidelines on the operation of Payment Aggregators (PAs) and their roles in facilitating domestic and cross-border transactions. The current circular extends these regulations to entities facilitating cross-border payments for imports and exports​​.

2. Direct RBI Regulation: Entities involved in cross-border payment transactions are now directly regulated by the RBI and classified as Payment Aggregator-Cross Border (PA-CB)​​.

3. Definition and Authorization:

   PAs-CB are defined as entities that facilitate online cross-border payment transactions for permissible goods and services.Non-banks offering PA-CB services must apply for RBI authorization by April 30, 2024.Entities can seek authorization for exclusively export-related, import-related, or both types of transactions.There are specific guidelines on governance, merchant onboarding, and customer grievance that must be complied with within three months from the issuance of this circular​​.

4. Net Worth Criterion:

   Existing non-bank PAs-CB must have a minimum net worth of ₹15 crore at the time of authorization application and increase it to ₹25 crore by March 31, 2026.New non-bank PAs-CB must also meet these net worth requirements.Non-compliance with net worth requirements or failure to apply for authorization will require the entities to wind up their PA-CB activities by July 31, 2024​​.

5. Operational Guidelines:

   Import only PA-CBs must maintain an Import Collection Account (ICA) with an Authorized Dealer (AD) bank.Export only PA-CBs must maintain an Export Collection Account (ECA), with different accounts for different currencies.Import and Export PA-CBs must adhere to the requirements for both import and export facilitation​​.

6. Miscellaneous Provisions:

   The maximum value per unit of goods/services in import and export transactions processed by PA-CBs is capped at ₹2,500,000.All existing RBI instructions for PAs also apply to PA-CBs.AD banks involved in PA-CB transactions must ensure compliance with FEMA requirements​​.

These points provide an overview of the regulations that payment aggregators engaging in cross-border transactions must follow. The circular emphasizes the importance of authorization, adherence to net worth standards, and compliance with operational and customer due diligence requirements to operate within the regulatory framework established by the RBI.