Consider the following statements regarding the directions provided by the Reserve Bank of India with respect to regulating entities facilitating cross border payment transactions-

I.The Reserve Bank of India will directly regulate all entities facilitating cross-border payment transactions for the import and export of goods and services.

II.According to the new circular, RBI made it mandatory for the non-banks providing PA-CB services to have a minimum net worth of ₹15 crore at the time of applying to the RBI for authorisation and a minimum net worth of ₹25 crore by March 31, 2026.

III.  It also said banks undertaking PA-CB activity need to fulfil the requirements for  PA-CBs by April 30, 2025.

Which of the following statements is/are not true ? 

Solution

The Reserve Bank of India will directly regulate all entities facilitating cross-border payment transactions for the import and export of goods and services.   As per the circular, such entities will be treated as Payment Aggregator-Cross Border (PA-CB).  Currently, all Payment Aggregators (PA), which facilitate the processing of domestic transactions in online mode, come under the ambit of RBI regulations.   According to the new circular, RBI made it mandatory for the non-banks providing PA-CB services to have a minimum net worth of ₹15 crore at the time of applying to the RBI for authorisation and a minimum net worth of ₹25 crore by March 31, 2026.   It also said banks undertaking PA-CB activity need to fulfil the requirements for  PA-CBs by April 30, 2024.