Reserve Bank of India has been asked to regulate the entities providing payment and settlement facilities for online cross-border export-import transactions. Reserve Bank of India has given this information by issuing a press release.
What RBI regulations said
According to this regulation, all such authorized dealer banks, payment aggregators and institutions including PA-CBs, which do settlement and processing of cross border payment transactions regarding import export of goods and services, will have to follow the instructions of RBI.
According to the regulations of RBI, all payment aggregators who provide the facility of processing domestic transactions in online mode will come under the purview of RBI circulars. The Central Bank said to bring all the institutions providing cross border payment facilities for export and import of goods and services under the direct regulation of RBI.
Payment gateways and payment aggregators
The Reserve Bank of India gave in-principle approval to many applicants but the final approval is pending for more than a year. RBI has barred some big companies which had received in-principle approval for payment aggregator license from onboarding new customers.
Payment Gateways are companies that provide technology infrastructure for online transactions. Payment aggregators are financial institutions that provide e-commerce websites and merchants the facility to take payments from customers so that all merchants do not have to create their own payment system. Payment aggregators collect payments from customers and transfer them to merchants.