Revised framework ends bank dependence, opens market for handling international payments
Fintech firms are preparing for a major expansion in cross-border payments after the Reserve Bank of India began issuing licences under its new Payment Aggregator–Cross Border (PA-CB) framework. The move has replaced the earlier OPGSP (online payment gateway service providers) structure and gives non-bank payment firms direct regulatory approval to handle international collections and payouts, removing long-standing dependence on banks and opening a significantly larger business opportunity.
Razorpay, Cashfree Payments, Pine Labs, PayGlocal, Skydo, BriskPe and Exim Pe are among the firms that have secured the authorisation, which executives say is already changing how they operate.
Under the previous model, banks had to apply to the RBI on behalf of fintechs, and any withdrawal of the partnership meant the fintech lost its authorisation instantly. “Under OPGSP, a bank would apply to RBI on your behalf. If the bank decided to end the partnership, your authorisation ended too,” Movin Jain, co-founder of Skydo told Fe. The new licence recognises these companies as regulated entities, enabling them to choose their banking partners, streamline compliance and build technology systems without being bound to a bank’s internal processes. “That regulatory independence completely changes how we operate,” Jain added.
The shift comes at a time when export and digital commerce sectors are expanding, creating demand for faster and more transparent cross-border payments. MSME exports rose to Rs 12.39 lakh crore in FY25 from Rs 3.95 lakh crore in FY21, with the number of MSME exporters more than tripling during this period. Companies such as Skydo, which caters to small and mid-sized exporters, said the licence gives them room to scale as more MSMEs sell to global buyers and look beyond traditional bank-led payment channels.
The RBI introduced the revamped framework in 2023 and has steadily issued licences since, aligning with the government’s goal of reaching $1 trillion in exports by FY26. Investor interest reflects this momentum. Skydo recently raised $10 million in a Series A round led by Susquehanna Asia Venture Capital, signalling confidence that fintech-led cross-border infrastructure will be essential for exporters in services, e-commerce and software.
According to consultants, banks have historically dominated the import–export payments space but often relied on intermediaries, including domestic and foreign non-banks, to support merchant flows. Bringing these entities directly under the RBI offers more predictable compliance norms and higher transaction limits. “Cross-border e-commerce is expected to pick up steadily, and there is a need for more targeted regulation,” Vijay Mani, partner, banking and capital markets leader at Deloitte, said. Industry experts pointed out that a dedicated framework had become necessary as global commerce increasingly shifts to digital channels.
