{"id":15839,"date":"2024-05-03T13:13:20","date_gmt":"2024-05-03T07:43:20","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=15839"},"modified":"2026-03-23T23:33:17","modified_gmt":"2026-03-23T18:03:17","slug":"international-payments-razorpays-video-kyc","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/international-payments-razorpays-video-kyc\/","title":{"rendered":"PA-CB Compliance for International Payments: The Ultimate Video KYC Guide"},"content":{"rendered":"

Navigating regulatory requirements is crucial for businesses aiming to expand their reach across borders. Razorpay has taken a significant stride toward global compliance for <\/span>export payments<\/span><\/a> with the recent integration of Video KYC (Know Your Customer) into its onboarding process. This initiative makes Razorpay one of the first few payment aggregators that adhere to Payment Aggregator Cross Border (PA-CB) guidelines.\u00a0<\/span><\/p>\n

Navigating PA-CB Guidelines: A Simplified Overview<\/b><\/h2>\n

The recent<\/span> circular<\/span><\/a> issued by RBI underscores the importance of enhanced due diligence for cross-border payment aggregators. According to the PA-CB guidelines, onboarding international merchants mandates strict compliance with RBI’s Master KYC directions.\u00a0<\/span><\/p>\n

This necessitates thorough scrutiny, including a Video KYC session with the authorized signatory and the collection of self-attested KYC documents. Let’s break down the key aspects of these guidelines:<\/span><\/p>\n

1. What are PA-CBs?<\/b><\/p>\n

Payment Aggregator Cross Border (PA-CB) entities are RBI-regulated organizations that facilitate secure international payment transactions. They allow businesses to legally and efficiently import and export goods and services online by maintaining strict KYC and cross-border regulatory standards.<\/span><\/p>\n

2. Compliance with Guidelines<\/b><\/p>\n

Entities engaged in PA-CB activities, both existing and new, must ensure compliance with guidelines related to governance, merchant onboarding<\/a>, customer grievance redressal, and technology recommendations. Non-compliance may lead to refusal of authorization.<\/span><\/p>\n

3. Authorization Requirements and Net Worth Criterion<\/strong><\/p>\n

Non-Banks: Entities providing PA-CB services were required to secure RBI authorization during the initial 2024 rollout. Crucially, as of 2026, active non-bank PA-CBs must maintain a minimum net worth of \u20b925 crore by March 31, 2026. Entities failing to meet these strict regulatory milestones are strictly prohibited from facilitating cross-border transactions.<\/p>\n

4. Operational Requirements<\/b><\/p>\n

PA-CBs must maintain separate Import Collection Accounts (ICA) and Export Collection Accounts (ECA) with AD Category-I banks.<\/span><\/p>\n

Transactions must comply with Foreign Trade Policy regulations, and due diligence is required for both merchants and buyers.<\/span><\/p>\n

5. Regulatory Oversight<\/b><\/p>\n

PA-CB transactions are subject to reporting and reconciliation requirements under the Foreign Exchange Management Act (FEMA).<\/span><\/p>\n

PA-CBs must register with the Financial Intelligence Unit-India (FIU-IND) as part of the authorization process.<\/span><\/p>\n

6. Transition and Adaptation<\/b><\/p>\n

Existing non-bank PA-CBs must register their PA-CB activity with the RBI and seek approval if they wish to continue.<\/span><\/p>\n

Any changes in the below activity categories or commencement of new activities require prior approval from the RBI.\u00a0<\/span><\/p>\n