Cashfree Payments Receives RBI Nod For Cross Border Payments Product
The products will enable Indian fintech companies to offer the purchase of shares, exchange-traded funds units and other assets listed on foreign exchanges via UPI or net banking as a feature to Indian investors
Cashfree Payments, a payments and API banking solutions company, has announced that it received a go-ahead from the Reserve Bank of India for its cross-border payments product. The approval comes upon the company successfully piloting the solution during RBI's second cohort under the regulatory sandbox cross border payments. The product will enable Indian fintech companies to offer the purchase of shares, exchange-traded funds units and other assets listed on foreign exchanges via UPI or net banking as a feature to Indian investors. The cross-border investments will fall under the ambit of RBI's liberalized remittance scheme (LRS). As per RBI, the product can be considered for adoption by regulated entities subject to compliance with applicable regulatory requirements.
As per company statement, with this model, the investors will be able to simply login to an app integrated with Cashfree Payments, complete their basic KYC to begin transferring in Indian currency. The company will then convert this transferred amount into foreign currency, like US dollars, and remit to the foreign broker, allowing investors to successfully buy international stocks.
"We are delighted to have successfully completed the test phase of RBI's second cohort under the regulatory sandbox on cross-border payments. This achievement validates our efforts to constantly build innovative and effective solutions in the payment ecosystem. Our cross-border payments platform intends to make investing in foreign stocks a lot simpler and convenient, allowing retail investors to make payments via local payment methods. The product was evaluated on varying parameters, and clearing the evaluation further reiterates the resilience and agility that is a trademark of the Cashfree Payments systems," said Reeju Datta, co-founder, Cashfree Payments.
With the announcement of the exit of the second cohort, the product has been found viable within the boundary conditions defined during testing under the regulatory sandbox. With over 50 per cent market share among payment processors, Cashfree Payments today leads the way in bulk disbursals in India with its product payouts. Recently, SBI invested in Cashfree Payments. The company also integrates with major platforms such as Shopify, Wix, Paypal, Amazon Pay, Paytm and Google Pay. Apart from India, Cashfree Payments products are used in eight other countries including USA, Canada and UAE, claimed by the company in a statement.
Founded by Reeju Datta and Akash Sinha, Cashfree Payments provides full-stack payments solutions enabling businesses in India to collect payments and make payouts via all available methods with simple integration. Cashfree Payments' offering include an advanced and easy way to integrate payment gateways, a split payment solution for marketplaces, bank account verification API and Auto Collect, a virtual account solution to match inbound payment to customers.