Payment Aggregator Cross Border (PA-CB)

Recently, the Reserve Bank of India (RBI) announced that it would directly regulate entities facilitating cross border payment transactions.

Payment Aggregators – Entities that enable e-commerce sites and merchants to accept various instruments from customers to complete their payment obligations without the need for the merchants to create their own systems.
Payment Aggregator-Cross Border (PA-CB) – Entities that facilitate cross-border online payments for import and export of permissible goods and services.
Categories of PA-CB
- Export-only PA-CB
- Import-only PA-CB
- Export and import PA-CB

New RBI regulation

Authorised Dealer (AD) Category-I banks – They do not require separate approval for PA-CB activity.
Existing Non-banks providing PA-CB services – They must apply to the RBI for authorisation by April 30, 2024 and must register with the Financial Intelligence Unit-India (FIU-IND).
They shall have a minimum net worth of Rs. 15 crore at the time of applying and Rs. 25 crore by March 31, 2026.

Net worth is the value of the assets a corporation owns, minus the liabilities they owe.

New non-bank PA-CBs – They should have a minimum net worth of Rs 15 crore at the time of applying and Rs. 25 crore by the end of the 3^rd financial year of authorisation.
Other conditions – The maximum value per unit of goods / services sold/purchased shall be Rs. 25, 00,000.
If the per unit goods/ services imported exceeds Rs 2.5 lakh, then the PA-CB concerned must undertake due diligence of the buyer.
Customer due diligence should be undertaken by the merchant.
Proceeds from the Export Collection Account (ECA) shall be settled only in the account of such merchants.

Source:

Join Our Telegram

Agartala-Akhaura Rail Link

Asteroid ‘Dinkinesh’/Lucy spacecraft

Pradhan Mantri Suryodaya Yojana

06 Feb, 24
SHARE

Recently, Prime Minister announced Pradhan Mantri Suryodaya Yojana under which 1 crore households will get rooftop solar power systems. India’s Status of Current Solar Capacity India currently stands at 4th place globally in solar power capacity. As per Ministry of New an

Foreign Contribution Regulation Act (FCRA)- NGO

06 Feb, 24
SHARE

The Foreign Contribution Regulation Act, 2010 (FCRA) registration of two prominent non-governmental organisations (NGOs) — Centre for Policy Research (CPR) and World Vision India (WVI) have been cancelled this month. What is FCRA? Key provisions of FCRA, 2010 Key aspects Description

Voice clone-AI

06 Feb, 24
SHARE

Voice clone fraud has been on the rise in India. AI voice cloning – It is the process of creating a synthetic replica of a person’s voice through machine learning and speech synthesis technology.It is called as voice deepfakesor audio deepfakes. Objective – To achieve a high level of na

Science communication- how to promote

06 Feb, 24
SHARE

Steps taken by India to promote Science Communication Publications and Information Directorate (PID) - An organisation under Council of Science and Industrial Research (CSIR) established in 1951 for publishing and disseminating scientific information in India. National science magazines- The PI

Universal Basic Income (UBI)- Analysis

05 Feb, 24
SHARE

Universal Basic Income (UBI) can strengthen welfare architecture and unlock the nation’s latent demographic potential. UBI - It is an income support mechanism typically intended to reach all or a very large portion of the population regardless of their earnings or employment status. Objective- To provide enough to co