How are Payment Aggregators for Cross-Border (PA-CBs) changing Indian cross-border payments?

PA-CBs are offering faster, more transparent cross-border transactions and forex conversions compared to traditional banks, addressing issues like delays and opaque rates for Indian businesses.

What role has the Reserve Bank of India (RBI) played in cross-border payment competition?

The RBI has enabled competition by recognizing and regulating non-bank PA-CBs, and has issued circulars to ensure faster settlements and mandate digital interfaces for monitoring forex transactions.

What advantages do PA-CBs offer to Indian exporters over traditional banks?

PA-CBs provide quicker transaction times, transparent forex rates, and advanced features like virtual account numbers, making cross-border payments more cost-effective and efficient for exporters.

Home / Business and Economy / Fintech Challenges Banks in Cross-Border Transactions

Fintech Challenges Banks in Cross-Border Transactions

27 Apr

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Summary

Fintechs offer faster cross-border payments than traditional banks.
RBI has enabled competition by recognizing payment aggregators.
Banks face pressure as new players streamline forex transactions.

Fintech Challenges Banks in Cross-Border Transactions

Large Indian banks are experiencing pressure as the Reserve Bank of India (RBI) opens the cross-border payment landscape to regulated non-bank platforms. Companies previously reliant on traditional banks for foreign exchange transactions are now benefiting from faster processing and greater transparency offered by Payment Aggregators for Cross-Border (PA-CBs).

Businesses like Azul Arc and Purple Cliq Ventures have reported significant improvements, moving from multi-day bank transfers to within-a-day settlements with PA-CBs. This shift addresses long-standing issues of delays, fluctuating rates, and a lack of transparency that impacted exporters. The RBI's recent circulars, including one from April 9, 2026, aim to ensure timely credit to beneficiary accounts and mandate digital interfaces for monitoring forex transactions.