Industry's feedback on the RBI's Payment Aggregator - Cross Border Regulation | nasscom | The Official Community of Indian IT Industry

Terms of use

Terms of Use

The use of this site and the content contained therein is governed by the Terms of Use. When you use this site you acknowledge that you have read the Terms of Use and that you accept and will be bound by the terms hereof and such terms as may be modified from time to time.

All text, graphics, audio, design and other works on the site are the copyrighted works of nasscom unless otherwise indicated. All rights reserved.
Content on the site is for personal use only and may be downloaded provided the material is kept intact and there is no violation of the copyrights, trademarks, and other proprietary rights. Any alteration of the material or use of the material contained in the site for any other purpose is a violation of the copyright of nasscom and / or its affiliates or associates or of its third-party information providers. This material cannot be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way for non-personal use without obtaining the prior permission from nasscom.
The nasscom Members login is for the reference of only registered nasscom Member Companies.
nasscom reserves the right to modify the terms of use of any service without any liability. nasscom reserves the right to take all measures necessary to prevent access to any service or termination of service if the terms of use are not complied with or are contravened or there is any violation of copyright, trademark or other proprietary right.
From time to time nasscom may supplement these terms of use with additional terms pertaining to specific content (additional terms). Such additional terms are hereby incorporated by reference into these Terms of Use.

Disclaimer

The Company information provided on the nasscom web site is as per data collected by companies. nasscom is not liable on the authenticity of such data.
nasscom has exercised due diligence in checking the correctness and authenticity of the information contained in the site, but nasscom or any of its affiliates or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this site. The information from or through this site is provided "as is" and all warranties express or implied of any kind, regarding any matter pertaining to any service or channel, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement are disclaimed. nasscom and its affiliates and associates shall not be liable, at any time, for any failure of performance, error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communications line failure, theft or destruction or unauthorised access to, alteration of, or use of information contained on the site. No representations, warranties or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability or applicability of the information to a particular situation.
nasscom or its affiliates or associates or its employees do not provide any judgments or warranty in respect of the authenticity or correctness of the content of other services or sites to which links are provided. A link to another service or site is not an endorsement of any products or services on such site or the site.
The content provided is for information purposes alone and does not substitute for specific advice whether investment, legal, taxation or otherwise. nasscom disclaims all liability for damages caused by use of content on the site.
All responsibility and liability for any damages caused by downloading of any data is disclaimed.
nasscom reserves the right to modify, suspend / cancel, or discontinue any or all sections, or service at any time without notice.

For any grievances under the Information Technology Act 2000, please get in touch with Grievance Officer, Mr. Anirban Mandal at data-query@nasscom.in.

New

See all

No notification found.

Industry's feedback on the RBI's Payment Aggregator - Cross Border Regulation

Garima Prakash

@GarimaP

December 22, 2023

Public Policy

On December 19, 2023, we wrote to the Reserve Bank of India (RBI) highlighting industry's feedback and gave suggestions on the Regulation for Payment Aggregators - Cross Border (PA-CB Regulation). Our feebdack included the following:

The KYC requirement for PA-CB services should be reconsdiered, with a view to adopt a risk-based approach. This will enable a balance between ease of doing business for the industry and addressing money laundering/terrorism financing concerns.
Timelines given to the industry to adapt to the new PA-CB Regulation should be extended. This will enable minimum disruption to the import-export of goods and services.

In addition to the above, we sought a number of clarifications for effective compliance with the PA-CB regulation. Some of our queries are:

Can adherence to PA-PG Guidelines take place within 90 days after the grant of PA-CB authorisation from the RBI? This is important to understand since the applicant should not be required to adhere to additional compliances without being aware of the fate of its PA-CB application.
Is this net worth requirement at an entity level or at activity level? For example, if an entity has achieved this required net worth for PA license, does that suffice for PA-CB business as well? Or the entity needs to have an additional net worth of ₹15/25 crore for the PA-CB business?
Can a PA having operations in multiple jurisdictions onboard its group entity providing PA or similar services abroad? This group entity may not necessarily be categorised as a PA in that jurisdiction and may be known by some other name.
Is it correct that - in case a foreign PA/marketplace has been onboarded by the PA-CB, the KYC needs to be undertaken for the foreign PA/marketplace only, and not the individual overseas merchants registered on overseas PA. In our conversation with the industry, it appeared that there is some difference of view on this point.
Whether the RBI would be ok to consider that an overseas merchant has complied with customer due diligence requirements if it has fulfilled customer due diligence norms of that specific jurisdiction? If not, what level of proof of identity and proof of address of other jurisdictions would be acceptable under India’s Customer Due Diligence (as defined in the Master Direction – Know Your Customer Direction, 2016).
Does the requirement to do Customer Due Diligence (as defined in the Master Direction – Know Your Customer Direction, 2016) also apply to already onboarded merchants in India? If yes, what is the timeline for the same?
It would be difficult to quantify a service in the number of units. How should this situation be dealt with in terms of identifying whether the transaction is permitted under PA-CB regulation? How will unit measure work while calculating the limit for services?

For more information, kindly write to garima@nasscom.in with a copy to policy@nasscom.in.

RBI import export payments

Disclaimer

That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.

Garima Prakash

Manager, Public Policy and Government Affairs

Reach out to me for all things policy about e-commerce, international trade, export controls, start-ups and fintech

Call for Inputs: SEBI's consul...

Swapnil