A new dawn for cross-border payments
₹15 crore, and raise it to ₹25 crore by 31 March, 2026. According to Movin Jain, founder of Skydo, a cross-border payments company, the neworth criterion may burden some startups. “But I do feel that it is important because the RBI recognizes that unless you have strong financials, it is difficult to get assurance to consumers i.e.
SMBs", Jain said. The new rules also broaden the horizons for fintechs operating in the sector. Former NTT Data India CEO Dewang Narella, founder of cross-border payments company HiWi, said, “The new regulation broadens the market, allowing fintechs and others to enter this space.
This allows a level playing field. Earlier, banks were doing most of the work, but now, for merchants, there is far more choice of players, instead of just going to banks." Another payments fintech founder said that currently, companies in this space partner a bank, and the bank writes to the RBI on the fintech’s behalf. “Only after the RBI blessed the arrangement, a fintech could have operationalized the business.
The companies were earlier dependent on their partner bank for both operations as well as regulation. We will still be dependent on a bank to operate, but not dependent on them for regulation. RBI will directly oversee us." An export PA-CB will be required when an Indian merchant sells goods and services abroad and the money comes to India; whereas import PA-CB is needed when a foreign company charges Indian consumers (such as small businesses) and the money moves out of India.
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