Regulation of Payment Aggregator – Cross Border

Regulation of Payment Aggregator – Cross Border (PA – Cross Border)

A reference is invited to the Reserve Bank of India (RBI) circulars on –

1. ‘Guidelines on Regulation of Payment Aggregators and Payment Gateways’ – (a) DPSS.CO.PD.No.1810/02.14.008/2019-20 dated March 17, 2020 and (b) CO.DPSS. POLC.No.S33/02-14-008/2020-2021 dated March 31, 2021,
2. ‘Processing and Settlement of Export related receipts facilitated by Online Payment Gateways’ – A.P. (DIR Series) Circular No. 17 dated November 16, 2010,
3. ‘Processing and Settlement of Export related receipts facilitated by Online Payment Gateways – Enhancement of the value of transaction’ – A.P. (DIR Series) Circular No. 109 dated June 11, 2013,
4. ‘Processing and settlement of import and export related payments facilitated by Online Payment Gateway Service Providers’ – A.P. (DIR Series) Circular No.16 dated September 24, 2015, and
5. ‘Processing and settlement of small value Export and Import related payments facilitated by Online Export-Import Facilitators (OEIF) (erstwhile OPGSP)’ – draft circular issued on April 7, 2022 for seeking feedback from banks and other stakeholders.

2. All Payment Aggregators (PAs) which facilitate processing of domestic transactions in online mode are covered within the scope of the circulars referred to above at paragraph 1(a). Further, instructions for cross-border payment transactions are provided for in the circulars mentioned above at paragraphs 1(c) to 1(e) as well as through specific approval given by the RBI to banks for their collection agent arrangements.

3. Keeping in view the developments that have taken place 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 direct regulation of the RBI. Such entities shall be treated as Payment Aggregator-Cross Border (PA-CB); details thereof are provided in Annex.

4. Entities, including Authorised Dealer (AD) banks, PAs and PAs-CB, involved in processing / settlement of cross-border payment transactions for import and export of goods and services, shall comply with these instructions (as updated from time to time).

5. This directive is issued under Section 10 (2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007), and, Section 10 (4) and Section 11 (1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999), and is without prejudice to permissions / approvals, if any, required under any other law.

Notification

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