Current Affairs   »   Banking Current Affairs 2022   »   RBI approves Open, Cashfree Payments, PayNearby...

RBI approves Open, Cashfree Payments, PayNearby and Fairexpay for Cross-Border Payments

The Reserve Bank of India gave the go-ahead to Open, Cashfree Payments, PayNearby & Fairexpay, providers of payments and API banking solutions, for its cross-border payments offering. Cross-border payments are the focus of the Reserve Bank of India’s (RBI) announcement about the Second Cohort’s release from the Regulatory Sandbox. The reserve bank chose four of the eight entities that were a part of the Test Phase. These companies include the unicorn of neobanking, Open, as well as Cashfree Payments, PayNearby, and Fairexpay. These entities have all successfully passed the second cohort’s Test Phase.

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KEY POINTS:

  • These organisations can now provide their cross-border payment solutions to regulated businesses including banks and NBFCs, according to the RBI.
  • The RBI’s liberalised remittance policy will cover cross-border investments. According to RBI, regulated entities may consider using the product if it complies with all relevant regulatory criteria.
  • In order to enable investors to effectively purchase foreign stocks, the company will convert the transferred amount into foreign currency, such as US dollars, and transmit it to the overseas broker.
  • The product has been determined to be viable within the boundary parameters established during testing under the regulatory sandbox, according to the announcement of the exit of the second cohort.
  • With its product payouts, Cashfree Payments currently dominates the industry for bulk disbursals in India with over 50% of the market share among payment processors. SBI made a recent investment in Cashfree Payments.
  • Cashfree business has integrations with significant platforms including Shopify, Wix, Paypal, Amazon Pay, Paytm, and Google Pay. In addition to India, eight other nations, including the USA, Canada, and the UAE, use Cashfree Payments solutions.

About Open Payments:

Open is a neobank that provides B2B services like payment solutions, APIs, and payment gateways that enable cross-border payments. Open is one of India’s 22 fintech unicorns.

About Cashfree Payments:

The solution from Cashfree Payments aims to give Indian fintech companies the ability to let Indian investors purchase shares, exchange-traded fund (ETF) units, and other assets listed on foreign markets using UPI/Net Banking.

About Fairexpay Payments:

For outbound remittance, Fairexpay offers an aggregation platform of international payment service providers.

About PayNearby Payments:

PayNearby enables the existing Rupee Drawing Arrangement (RDA) method to route the inward cross-border payment to the beneficiary’s Aadhaar number as a virtual bank account.

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