.
.
.
Payment Aggregator - Cross Border (PA-CB) serves as a facilitator for online cross-border payment transactions associated with the import and export of permissible goods and services. On October 31, 2023, the Reserve Bank of India (RBI) issued a circular titled 'Regulation of Payment Aggregator – Cross Border (PA – Cross Border)' (PA – CB Directions). This directive was specifically addressed to all payment system providers and participants. The release of PA – CB Directions is a follow-up to the earlier draft circular issued by the RBI on April 7, 2022, titled 'Processing and settlement of small value Export and Import related payments facilitated by Online Export-Import Facilitators (OEIF) (formerly OPGSP)' (Draft OEIF Directions).
The term Payment Aggregator Cross Border (PA-CB) specifically denotes the facilitation of online cross-border payments associated with the import and export of permissible goods and services. The Reserve Bank of India (RBI) has established distinct criteria and regulations for entities involved in PA-CB activities to ensure adherence to standards and accountability.
The RBI classifies PA-CB activities into three primary categories: export-only PA-CB, import-only PA-CB, and export and import PA-CB. Each category comes with its own set of requirements and guidelines, delineating the specific criteria applicable to entities engaged in these respective activities.
APPLICABILITY OF AUTHORIZATION
Non-bank entities aspiring to operate as Payment Aggregator Cross Border (PA-CB) must secure approval from the Department of Payment and Settlement Systems (DPSS) at the Central Office (CO) of the Reserve Bank of India (RBI). The approval process is to be conducted in accordance with the procedures specified in the relevant circular issued by the RBI. This ensures that non-bank entities seeking to engage in PA-CB activities adhere to the regulatory framework and requirements set forth by the DPSS.
|
AD Category-I Banks |
No separate approval required |
|
Non-banks which provide PA-CB services as on the date of the circular |
Apply to RBI on or before 30th April 2024 as prescribed in the circular |
|
Non- Banks wiling to act as PA-CB |
Seek approval from DPSS, RBI |
Net-worth
|
For Non-Banks which are already providing such services |
INR 15 Crores at the time of submission of application and INR 25 Crores by the 31st March 2026 |
|
For Non-Banks which do not provide PA-CB services as on the date of the circular / New Non- bank PA-CBs. |
INR 15 crores the time of the application submission and INR 25 Crores by end of third financial year from the date of grant of authorization |
Import and Export Accounts
Import-only Payment Aggregator Cross Borders (PA-CBs) are required to uphold an Import Collection Account (ICA) with an AD Category-I scheduled commercial bank. The funds collected from customers for import transactions are initially received in an escrow account held by the PA and subsequently transferred to the ICA. The ICA is then utilized for the onward settlement of payments to the offshore merchants.
Similarly, export-only Payment Aggregator Cross Borders (PA-CBs) are mandated to maintain an Export Collection Account (ECA) with an AD Category-I scheduled commercial bank. The ECA can be denominated in either Indian Rupees (INR) or foreign currency, offering flexibility in the currency of choice for conducting export-related transactions.
Payment Aggregator Cross Borders (PA-CBs) are obligated to establish an agreement with the AD Category-I bank to maintain a collection account. The AD bank responsible for managing the Import Collection Account (ICA) or Export Collection Account (ECA) must ensure compliance with all requirements stipulated under the Foreign Exchange Management Act (FEMA). This includes fulfilling obligations related to reporting and reconciliation of entries in the Export Data Processing and Monitoring System (EDPMS) or Import Data Processing and Management System (IDPMS). Consequently, PA-CBs and AD banks must define and agree upon their respective obligations from a foreign-exchange compliance perspective.
For import PA-CBs, it is imperative to maintain a sufficient balance in the Import Collection Account. Effective fund management becomes a crucial aspect to ensure seamless remittance and adherence to regulatory requirements.
Financial Intelligence Unit – India (FIU – IND)
Before applying for Payment Aggregator – Cross Border (PA-CB) authorization from the Reserve Bank of India (RBI), all existing PA-CBs are required to register with the Financial Intelligence Unit - India (FIU-IND). FIU-IND functions as India's national agency for managing information concerning financial transactions. It plays a crucial role in supporting intelligence, investigation, and enforcement agencies globally in their endeavors to combat money laundering and the financing of terrorism. This registration mandate ensures that existing PA-CBs are integrated into the broader framework of financial intelligence and compliance measures.
Customer Due Diligence and KYC
Payment Aggregator Cross Borders (PA-CBs) are mandated to conduct Customer Due Diligence (CDD) and adhere to Know Your Customer (KYC) procedures for merchants integrated into their platforms. This obligation extends to merchants on boarded directly, collaborations with e-commerce marketplaces, or partnerships with entities offering Payment Aggregator services abroad. Furthermore, for import transactions surpassing INR 2,50,000 per unit, it is imperative to carry out due diligence on the buyer as part of the regulatory requirements. This ensures a comprehensive and vigilant approach to verifying the identity and legitimacy of both merchants and buyers involved in transactions facilitated by PA-CBs.
Call or WhatsApp us on +91-99991-39391 for free consultation from our team of experts. You can also email us on reach@corpzo.com.
We share the detailed and reasonable estimated costs, documents and prerequisites for the complete process before starting the process to ensure transparency.
Our team warrants hassle free documentation. We collect the necessary documents and share the relevant drafts to ensure a timely filing and delivery.
Upon collecting the necessary documents and information, we waste no time in preparation and filing of your application. development on your application is brought to your attention.
On successful completion of the case we share all the relevant documents electronically and physically along with an assurance to pay you back if something is wrong.
The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards designed to ensure that all businesses accepting, processing, storing or transmitting credit card information maintain a safe environment.
A company which has the object of cultivating the habit of thrift & savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit, and which complies with such rules as are prescribed by the Central Govt.
Registration of NBFC's may be cancelled by the RBI for not conducting business in the manner specified in the respective statutes or due to any non-compliance. However, in certain circumstances, it is possible to apply for the revival of the NBFC whose li
A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 2013 of India, the main operations of NBFC include loans and advances, acquisition of shares, stock, bonds, hire-purchase insurance or chit-fund, but they do not inclu
An authorized company that is authorized to purchased foreign exchange from non-residents visiting India & residents & to sell foreign exchange for private & business travel purposes only is Known as Full fledged money changer (FFMC).
Payment services operated under financial regulation and performed from or via mobile is known as Mobile payment wallet. Mobile payment wallet also referred to as mobile money, mobile money transfer and mobile wallet.
An asset Reconstruction Company is a Company engaged in the business of buying bad loan from bank. These are specialized financial institutions that buys the bad loan, Non Performing Assets (NPAs) from banks & financial institution so that to clean up the
The firms incorporated under the Companies Act 2013 as the public or private limited company having objective of financial activity are known as NBFC or Non-Banking Financial Companies.
An autonomous group of people belonging to the same class willingly comes together to strive to be common economic, social and cultural objectives and criteria through a business that is jointly owned and democratically controlled by such citizens.
Catch comprehensive services for Mutual Fund Registration in India with our expert guidance. Navigate SEBI regulations seamlessly, establish your AMC, and unlock investment opportunities. Start now!
Our guide to Alternative Investment Fund (AIF) registration provides an in-depth look into the world of AIFs. We cover all three categories of AIFs - Category I, II, and III, each with its unique focus and benefits. From venture capital funds to hedge fun
CorpZo guides you through Depository Participants Registration, outlining the role, benefits, and eligibility of a DP. Learn about SEBI, NSDL, and CDSL regulations with us.
Payment Aggregator - Cross Border (PA-CB) serves as a facilitator for online cross-border payment transactions associated with the import and export of permissible goods and services. On October 31, 2023, the Reserve Bank of India (RBI) issued a circular
A Collective Investment Scheme (CIS), is an investment scheme in which several individuals come together to pool their money to invest in a particular asset(s) with the motive to share the returns derived from the said investment in accordance with the ag
The SEBI (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”) also apply to AIFs in the IFSC. The "SEBI" published Operating Guidelines for Alternative Investment Funds in International Financial Services Centres on November 26, 2018 "
An establishment in form of trust or institutions that records and maintains a complete record of transactions of investors for the benefit or convenience of mutual funds houses or listed entities are called as share transfer agents.
Merchant banker is a company and is combination of consultancy and banking services. Activities of merchant banker in India are regulated by SEBI (merchant banker) rule 1992.
Get the competitive edge in the digital payment landscape with Corpzo's expert guidance on obtaining the payment aggregator license in India. We help streamline your payment aggregation services while ensuring compliance with RBI guidelines. Unlock new op
A service providing entities which plays role of intermediate between banks and websites facilitating the communication of transaction information are known as payment gateway.
Organization which is registered under companies act 2013 or 1956 and which facilitate financing activity such as loan, savings, and insurance to the needy people or to those who are incapable of getting loan from banks and other financial institutions d
An Infrastructure Investment Trust (InvIT) is a collective investment scheme, similar to a mutual fund, that allows individual and institutional investors to invest directly in infrastructure projects in exchange for a small percentage of the income as a
CorpZo's services are designed to help businesses navigate the complex process of becoming a Third Party Application Provider within the UPI ecosystem. We ensure compliance with NPCI's SOPs, including adherence to market share cap regulations, and provide
This comprehensive guide provides a detailed overview of the IRDAI IMF registration process, outlining the crucial role of Insurance Marketing Firms (IMFs) in India's insurance sector. It delves into eligibility criteria, financial requirements, and opera
In other words, it is SEBI-registered Online Bond Platform Provider, serves as a facilitator for the buying and selling of bonds. Acting as intermediaries, these platforms furnish investors with a variety of bond investment options and enable seamless bon
Bespoke advisory focused on mission critical legal, financial and business aspects.
Uniquely repurpose strategic core competencies with progressive content. Assertively transition ethical imperatives and collaborative manufactured products.
Write About UsProfessional and trusted service, my company needed certification from the state excise in the State of Telangana and CORPZo were so professional in their approach, be it filing of part 3 and 4 of MSME or application process with the state exice that it made my life easy.
“
Will always look to a team which is knowledgeable particularly when it comes to the field of alternative medicine. I had spoken to many including the government offices but was confused how to proceed with setting up of my pharma unit, CORPZo had the right professional guidance available.
“
They believe in transparency in business and give high regard to Customer Satisfaction. Love to work with them and Highly Recommended
“
I needed to apply for business related registration and receive some certificates. Their service is very professional. I researched in the market and found that they are very cost effective, so initially I was a bit doubtful, but, for my surprise, they are better than some of the big house.
“
Awesome and excellent services provided to me. Great and polite gestures with full professional behavior . Have got my company incorporated by corpzo. It was done within a week and have been using their accounting services ever since. They have been a real boost to my business.
“
© 2024 Corpzo Ventures Private Limited.
