The Reserve Bank of India (RBI), which oversees the banking industry, is going to regulate businesses that handle the payment and settlement services for online cross-border import-export transactions.
RBI has introduced new rules for this purpose. They shared this information through a press release.
As per the rules of the Reserve Bank of India (RBI), all payment aggregators that help process online domestic transactions will now be under the control of RBI guidelines.
The central bank has stated in its rules that considering the growth in cross-border payments, it has been decided to directly oversee all organizations that offer cross-border payment services for the import and export of goods and services.
Under these rules, all authorized dealer banks, payment aggregators, and institutions, including PA-CBs, that are involved in settling and processing cross-border payment transactions for the import and export of goods and services must follow RBI’s instructions.
Payment gateways are companies that offer the technology infrastructure for online transactions.
Payment aggregators are financial institutions that enable e-commerce websites and merchants to accept payments from customers, eliminating the need for every merchant to create their payment system.
Payment aggregators collect payments from customers and pass them on to merchants.
The RBI has granted preliminary approval to many applicants, but final approval has been pending for over a year.
Some large companies that received preliminary approval for a payment aggregator license have been prohibited by the RBI from onboarding new customers.
