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RBI HAS RELEASED NORMS FOR REGULATING FINTECHS IN CROSS-BORDER PAYMENTS SPACE

Published on November 04, 2023
Current Context: RBI has released new norms for regulating fintechs in the cross-border payments space. This was announced on October 31st, 2023, and aims to bring these players under the regulator's direct supervision.
RBI HAS RELEASED NORMS FOR REGULATING FINTECHS IN CROSS-BORDER PAYMENTS SPACE
  • Here are some key highlights of the new regulations:
    • New category: Payment Aggregator-Cross Border (PA-CB): All entities processing online cross-border transactions for imports and exports will fall under this category and require RBI authorization.
    • Minimum net worth: Existing non-bank PA-CBs need a minimum net worth of ₹15 crore to apply for authorization. New applicants will need ₹25 crore.
  • Three license categories:
    • PA-CB-E (Export only): For handling mainly export payments.
    • PA-CB-I (Import only): For handling mainly import payments.
    • PA-CB (Both import and export): For handling both import and export payments.
  • Application deadlines:
    • Existing PA-CBs: Apply by April 30, 2024.
    • New applicants: Start applying from July 1, 2024

Question:

Q.1 What is the name of the licence that the fintechs will have to apply for from the RBI by April 30, 2024?
a. Payment Aggregator-Cross Border (PA-CB)
b. Payment Service Provider-Cross Border (PSP-CB)
c. Payment System Operator-Cross Border (PSO-CB)
d. Payment Gateway-Cross Border (PG-CB)

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