India-based payments and API banking company Cashfree Payments has obtained a payment aggregator-cross border licence from the RBI. This approval comes nearly one year after the RBI introduced regulations for such entities.

Cashfree Payments is among the initial non-banking entities to obtain the payment aggregator-cross border (PA-CB) licence, as noted on the RBI’s official website. The PA-CB licence allows Cashfree Payments to assist international businesses and entities regulated abroad with payment collections in India. It also enables the company to provide cross-border payment solutions for Indian exporters and freelancers.

According to business-standard.com, the RBI defines PA-CBs as entities that facilitate online payment transactions related to the import and export of eligible goods and services. They are classified into three categories, namely Export only PA-CB, Import only PA-CB, and Export and Import PA-CB. According to an RBI circular issued in October 2023, non-banks aiming to operate as PA-CBs must meet specific net worth requirements.

Initially, applicants must have a net worth of Rs 15 crore, which must increase to Rs 25 crore by 31 March 2026. New non-banks must achieve a minimum net worth of Rs 25 crore by the end of the third financial year following their authorisation. Other developments from Cashfree Payments In March 2024, Cashfree Payments announced the launch of its RiskShield product in a bid to offer merchants the possibility to curb cyber payment fraud in real-time.

Cashfree Payments’ launch of RiskShield was expected to reduce fraudulent activities by up to 40%, the product being designed as a real-time risk management solution for payment gateways. Cashfree Payments’ RiskShield was expected to provide a secure business environment for both clients and financial institutions by mitigating fraud, improving transaction experiences, supporting positive customer relationships, as well as minimising litigation risks. At the same time, merchants that were leveraging the orchestration platform of the company, FlowWise, gained the ability to integrate RiskShield in order to block fraud transactions on multiple Payment aggregators.

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