NEW DELHI, India — Indian fintech companies are set to enter a new phase of expansion following a transformative regulatory move by the Reserve Bank of India (RBI) that opens the country’s cross-border payments market to non-bank players.
Under the RBI’s newly implemented Payment Aggregator–Cross Border (PA-CB) framework, eligible fintech firms can now directly facilitate international payment collections and payouts after securing regulatory authorization. The framework replaces the earlier Online Payment Gateway Service Providers (OPGSP) regime, which required fintechs to operate through bank intermediaries and limited their ability to independently scale cross-border solutions.
The change grants fintechs direct regulatory standing, enhanced operational control, and greater flexibility in choosing banking partners and building proprietary payment infrastructure. Industry leaders say the move marks a critical inflection point for India’s digital payments ecosystem.
Several leading payment companies — including Razorpay, Cashfree Payments, Pine Labs, Skydo, BriskPe, and Exim Pe — have already received PA-CB approvals, positioning them to capitalize on rising demand for faster, more transparent international payment services.
The regulatory shift is expected to significantly benefit MSMEs, exporters, freelancers, SaaS companies, and cross-border e-commerce merchants, many of whom have long faced challenges with slow onboarding, high fees, and complex compliance requirements under traditional banking channels. Fintech-driven solutions are anticipated to deliver improved settlement times, clearer pricing structures, and enhanced customer experience.
“This framework provides long-awaited regulatory clarity and removes structural barriers that constrained innovation,” industry executives said. “It allows fintechs to compete on technology, service quality, and efficiency while remaining fully compliant.”
The RBI’s move comes as India’s cross-border trade, digital exports, and global services economy continue to expand. Analysts estimate that streamlined cross-border payment rails could unlock substantial transaction volumes over the next few years, particularly as Indian businesses increasingly serve international customers.
Investor confidence in the sector has strengthened alongside the regulatory reforms. Cross-border payments fintech Skydo recently raised fresh capital, reflecting growing interest in platforms that can address global payment needs at scale.
The PA-CB framework also aligns with the RBI’s broader vision to modernize India’s payments infrastructure, including initiatives to improve remittance efficiency and integrate domestic real-time payment systems with international networks.
Market observers expect the new regulatory regime to accelerate innovation, attract investment, and position India as a key global hub for cross-border fintech solutions — while improving access to secure, efficient, and compliant international payment services for businesses of all sizes.
