A valuable segment within the Indian FinTech industry, the facilitators of cross-border payments, are on the verge of a significant transformation. This shift is in anticipation of the challenging new Payment Aggregator-Cross Border (PA-CB) Regulations introduced by the Reserve Bank of India (RBI). While aimed at improving transparency, the new framework necessitates FinTechs to potentially restructure their operations, make significant additional investments in technology, and forge new partnerships to effectively meet compliance standards. This is not just about following new rules; it signals a new era where the RBI is determined to bring openness and responsibility to financial players handling funds in India. While it is a positive step for a more responsible industry, it does mean that FinTechs will have to deal with onerous compliance duties.
Click here to read the full article co-authored by Probir Roy Chowdhury and Tanya Nayyar (Regulatory Counsel).
Probir specializes in Corporate Commercial, Venture/Private Equity and Information Technology/FinTech. He has been involved in corporate transactions focused on the high technology industry including cross border Mergers & Acquisitions.