Context:
Crossborder payments firm Skydo, received an in principle approval from the Reserve Bank of India (RBI) to operate as a payment aggregatorcross border (PACB) entity.
Payment Aggregator Cross Border (PA-CB)
A Payment Aggregator Cross Border (PA-CB) entity is a company that facilitates online cross-border payments for the import and export of goods and services. The Reserve Bank of India (RBI) regulates PA-CBs to ensure accountability and compliance.
- What do PA-CBs do?
- Help businesses engage in international transactions securely and efficiently.
- Enable customers to make recurring cross-border payments and manage subscriptions.
- Provide virtual account management services to customers.
- What are the types of PA-CBs?
- Export-only PA-CB: A PA-CB that only allows exports.
- Import-only PA-CB: A PA-CB that only allows imports.
- Export and import PA-CB: A PA-CB that allows both exports and imports.
- What are the requirements for PA-CBs?
- Non-bank entities must apply for authorization from the RBI.
- They must maintain a minimum net worth.
- They must comply with the KYC norms mentioned in the Master Direction on KYC.
- They must undertake due diligence of the buyer if the per unit value of goods/services imported exceeds INR 2.5 lakhs.
Source: Business Standard
