CROSS BORDER TRANSACTION
RBI, ASEAN countries to create instant cross-border retail payments platform
The Reserve Bank of India and ASEAN nations are collaborating on "Project Nexus," aimed at establishing a platform for instant cross-border retail payments by linking fast payment systems. India joins Malaysia, Philippines, Singapore, and Thailand as founding members, with plans to expand globally by 2026, enhancing efficiency and reducing costs in international transactions.
India’s new finance hub in Gujarat eyes real-time dollar settlement by 2025
Real-time dollar settlement in India’s newest financial hub in Gujarat, GIFT City, is set to begin later this year. The service aims to attract foreign investors by streamlining transactions and reducing delays.
Avalara's strategy to expand in India aligns well with the country's export ambitions: Anil Paranjape
By leveraging technology, Avalara says businesses can focus on their core operations without being bogged down by the complexities of cross-border tax compliance.
RBI to boost rupee's internationalisation, liberalise norms for non-residents
The Reserve Bank of India (RBI) is intensifying efforts to internationalize the Indian Rupee (INR) by making regulatory changes for non-residents and enhancing the appeal of the GIFT City as an international financial center. The RBI plans to liberalize regulations related to INR accounts for non-residents and allow them to open rupee accounts outside India.
Inside the illicit trade of exotic animals from Myanmar to India
The civil war in Myanmar and resultant anarchy in border areas have given a new life to the smuggling of wildlife—from marmoset monkeys to green anacondas—to India. A complex network of wildlife smuggling involving exotic animals from various countries being trafficked through Myanmar to Indian metro cities like Kolkata.
Brazilian payment company Ebanx set to start India operations with Yes Bank
Ebanx helps nearly 300 brands process payments in multiple countries across Latin America and Africa. It now wants to enter India, which will be its first market in Asia. It will offer payments infrastructure for global brands looking to sell to Indian consumers, who can use Ebanx to pay through the local currency and by using local payment methods.
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Citi targets clients with a ‘digital nexus’, high transaction volumes
Citi is strategically targeting high transaction volume sectors in India like industrials, auto supply chains, clean energy, mobility, consumer, and healthcare. The bank aims to maintain its lead in funding digital disruptors and supporting startups in navigating market conditions.
PayU invests $5M in BRISKPE to boost cross-border payments ecosystem for MSME merchants
This investment underscores the importance of seamless international payments as part of PayU India’s strategy.
Rise and shine, how to gain currency
There is an emerging need for energy-importing economies like India and China to try to delink international trade from the dollar. But it is not an easy job. The dollar is at one end of nearly 90% of all foreign exchange trades. The greenback constitutes around 60% of forex reserves held by central banks globally. Foreign governments and private investors hold over 30% of US treasuries.
Fintechs push for cross-border payments; Chiratae’s $70 million portfolio sale
Happy Wednesday! Razorpay, Cashfree, PayGlocal and other fintech startups are seeking a licence for facilitating cross-border payments from the RBI. This and more in today’s ETtech Morning Dispatch.
Fintech is making global payments its business
Razorpay, Cashfree, PayGlocal, and new entrants rush for RBI's PA-CB licence to tap into lucrative B2B cross-border payments market. Fintechs eye big share of $250B SME exports, focusing on high margins and expanding services.
Indian lenders and Gazprombank in talks for deepening banking services
Indian lenders and Russia's Gazprombank are in early-stage discussions to establish correspondent banking services for cross-border payments and trade support. Gazprombank aims to expand its operations in India and has engaged with Indian bankers to explore strengthening banking ties. The talks come amid challenges in international trade due to US-led sanctions on Russia. Gazprombank shared details on sanctions and compliance protocols, while Indian banks discussed exploring bilateral payments through the special rupee vostro account (SRVA) mechanism, permitted by the RBI to promote bilateral trade in local currencies.
RBI, Bank of Indonesia sign MoU promoting use of local currencies for trade
The Reserve Bank of India and the Bank of Indonesia signed a MoU to promote the use of local currencies for cross-border transactions, enabling exporters and importers to invoice and pay in their respective domestic currencies, optimizing costs and settlement time for transactions.
WTO backs India's pitch to cut remittance cost
Separately, Indonesia has backed New Delhi's proposal to reinvigorate the work under the Work Programme on Electronic Commerce, which requires structured discussion on trade-related issues over global e-commerce, taking into account the economic, financial and development needs of developing countries.
Streaming a movie abroad may soon come with taxes at the border
The World Trade Organization (WTO) faces a potential breakdown of the decades-old moratorium on digital customs charges. The tariff ban, allowing free cross-border digital transactions, is set to expire in March. Large developing economies, including Indonesia, South Africa, and India, signal opposition to an extension, citing concerns about US Big Tech dominance, data privacy, and lost customs revenue. The lack of an international framework for digital trade complicates negotiations.
PayPal registers with FIU under anti-money laundering law
American online payments gateway service provider PayPal has registered its operations with the Financial Intelligence Unit of India, about six years after a protracted legal battle ensued between the two entities.
At WTO, India proposes lower cost of cross-border payments
India has proposed a work programme at the World Trade Organization (WTO) aimed at reducing the cost of cross-border remittances to promote international trade. The proposal emphasizes the importance of promoting interoperability and interlinkages of digital payment infrastructures to achieve cheaper, faster, and more transparent cross-border payments, including remittances.
Yes Bank, LeRemitt in pact to enable smooth cross-border transactions for MSMEs
In addition to multi-currency support, the platform offers transparency, efficiency, and cost benefits for small businesses involved in global trade, making it more accessible for MSMEs, the release said.
Nasscom wants government to let overseas Indian startups list directly
Industry body Nasscom surveyed 139 startups. Of these, Nasscom said approximately 16.5% of Indian-origin startups have externalised legal structures and would consider raising equity capital through public listing in India if the regulations are amended to allow for a direct listing
Govt, RBI actively engaged on digital currency: FinMin Nirmala Sitharaman
Finance Minister Nirmala Sitharaman stated that the government and the Reserve Bank are actively involved in enhancing the central bank digital currency (CBDC) for cross-border payments. The RBI initiated a pilot project for wholesale CBDC with nine banks, and a retail version of CBDC or e-rupee was launched on December 1, 2022.
Paytm to invest Rs 100 crore in GIFT City; focus on cross-border payment solutions
Along with the GIFT city investment, Paytm said it will establish a development centre in GIFT City to build cross-border solutions and provide a technology backbone.
Role of cryptocurrencies in simplifying & speeding up cross-border transactions
Cryptocurrencies, such as Bitcoin and Ethereum, operate on decentralized blockchain technology. This removes the need for intermediaries like banks and payment processors, substantially reducing transaction costs associated with cross-border transfers. Traditional financial institutions often charge higher currency conversion fees, wire transfers, and other related services.
RBI bring entities facilitating cross-border payment transactions under its direct regulation
RBI has decided to regulate entities facilitating payment and settlement for online cross border export / import transactions as Payment Aggregators - Cross Border (PA-CB) under the Payment and Settlement Systems Act, the central bank said in a circular.
World Cup 2023 leads to 12.5% surge in contactless cross border transactions, reveals Visa Report
As per Visa’s data, there has been a 12.5% growth in contactless cross border transactions during the World Cup as compared to July 2023, before the festive season began. 36% of the cross-border transactions in India were contactless, 2X of the total domestic contactless transactions. Further, according to Visa, the average stay of the international audience during the world cup was 11 days whereas visitors from New Zealand stayed longer.
India a focus market for us; e-commerce, B2B services propelling growth, says Payoneer’s Gaurav Shisodia
For a small exporter, overseas transactions are tough and expensive. Payoneer says its solutions can simplify the process.
India, Singapore digital payment link clocking 100 transactions per day
On February 21, India and Singapore launched the real-term linkage between the UPI and PayNow to facilitate instant and cost-effective cross-border fund transfers. Money transfers can be made from India to Singapore using mobile numbers and from Singapore to India using virtual payment addresses.
RBI issues rules to regulate cross-border payment aggregators
The central bank sad that non-banks that provide cross-border payment aggregator (PA) services will have to apply for an authorisation from the regulator by April 30, 2024.
RBI issues regulations to govern payment aggregators in cross-border transactions
The RBI's regulations aim to bring all entities involved in facilitating cross-border payment transactions for the import and export of goods and services under direct RBI regulation, considering the developments in cross-border payments. This includes Authorised Dealer (AD) banks, PAs, and PAs-CB (Payment Aggregators for Cross-Border transactions).
Ease of business: GoI's approach to MFN clause needs a serious outlook
Tax treaties provide for a lower rate of tax in the country of source for residents of another country. They also provide for a situation where profits of MNCs are taxable in the source country only if there is a permanent establishment and provide for credit of taxes paid in the source country when the income is taxed once again in the residence country. This is to avoid double taxation.
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