Archive · 14 Dec 2025
RBI's New Framework Boosts Fintech Cross-Border Payments
The Reserve Bank of India has started giving special permits to fintech companies, allowing them to handle international money transfers directly.
Before, these companies had to work through banks, which could be slow and complicated.
Now, they can manage their own systems, choose their banking partners, and serve more businesses that sell goods and services abroad.
This change is expected to make international payments faster and more transparent, helping small and medium-sized businesses grow.
Several fintech companies have already received these permits and are expanding their services.
The government hopes this will boost India's exports and make the country a bigger player in global trade.
The RBI has started issuing licences under the new PA-CB framework, allowing fintechs to handle cross-border payments directly.
Fintechs like Razorpay, Cashfree Payments, and Skydo have secured these licences, gaining regulatory independence from banks.
The shift aims to support the growth of MSME exports, which have tripled in recent years, and aligns with the government's goal of reaching $1 trillion in exports by FY26.
Fintechs see strong financial incentives in cross-border transactions, which offer higher margins than domestic payments.
While banks still dominate the import-export payments space, fintechs are gaining traction among smaller exporters and internet-first brands seeking faster settlements and simpler onboarding.
- Who
- Fintech firms like Razorpay, Cashfree Payments, Pine Labs, PayGlocal, Skydo, BriskPe, and Exim Pe
- What
- The Reserve Bank of India (RBI) has started issuing licences under its new Payment Aggregator–Cross Border (PA-CB) framework, allowing fintechs to handle international collections and payouts directly
- When
- The RBI introduced the revamped framework in 2023 and has been issuing licences since then
- Where
- India
- Why
- To facilitate faster and more transparent cross-border payments, reduce dependence on banks, and support the government's goal of reaching $1 trillion in exports by FY26
- Licensed Fintechs
- Razorpay, Cashfree Payments, Pine Labs, PayGlocal, Skydo, BriskPe, Exim Pe
- Previous Model
- OPGSP (Online Payment Gateway Service Providers)
- New Model
- PA-CB (Payment Aggregator–Cross Border)
- MSME Exports Growth
- Rs 12.39 lakh crore in FY25 from Rs 3.95 lakh crore in FY21
- Skydo Funding
- $10 million in Series A round led by Susquehanna Asia Venture Capital
- Cashfree Payments Growth
- 200% year-on-year growth in transaction volumes
- AD-I Bank Partner
- JP Morgan Payments