If you've researched international payment gateways for Indian businesses, you've probably encountered the term "PA-CB license." This guide explains what it is, which platforms have it, and why it matters for your cross-border payment compliance.
What Is PA-CB
PA-CB stands for Payment Aggregator – Cross Border. It is a licence issued by the Reserve Bank of India (RBI) to regulate entities that facilitate cross-border payment transactions for Indian merchants.
The RBI introduced the PA-CB framework in 2024 as part of its broader effort to regulate payment aggregators handling international transactions. Before this framework, cross-border payment facilitation was regulated under a broader, less specific regime.
What PA-CB Licences Regulate
PA-CB entities are authorised to:
- Facilitate inward international payments (foreign buyers paying Indian merchants)
- Facilitate outward international payments (Indian buyers paying foreign merchants)
- Onboard Indian merchants for cross-border payment acceptance
- Convert and settle foreign currency to INR for Indian merchants In plain terms: A PA-CB licence is what makes a cross-border payment gateway legally authorised to handle your international payments under RBI regulations.
Why PA-CB Matters for Indian Businesses
Compliance and FEMA Legality
FEMA (Foreign Exchange Management Act) requires Indian businesses to receive international payments through "authorised channels." An RBI PA-CB licensed gateway is an authorised channel. Receiving through unlicensed or unauthorised platforms creates FEMA compliance risk.
FIRA Validity
FIRA generated by a PA-CB licensed gateway is recognised as valid documentation for GST zero-rating export claims and income tax purposes. FIRA from unlicensed platforms may not carry the same regulatory recognition.
Protection Against Platform Risk
PA-CB licensed platforms are subject to RBI's oversight, capital requirements, and operational standards. This provides a baseline of regulatory accountability that unlicensed platforms don't have.
Which Platforms Have PA-CB Licence (or Equivalent)
| Platform | Regulatory Status |
|---|---|
| Playto Pay | PA-CB licensed (RBI) |
| Skydo | PA-CB licensed (RBI) |
| Razorpay International | PA-CB licensed (RBI) |
| Cashfree International | PA-CB licensed (RBI) |
| Wise Business | Operating under RBI oversight |
| PayPal India | NBFC + separate RBI licences |
| Xflow | PA-CB licensed (RBI) |
Note: Licence statuses can change. Verify current licence status on the RBI's official website (rbi.org.in) or with the platform directly before making compliance decisions.
PA-CB vs Older Cross-Border Payment Frameworks
Before the PA-CB framework, cross-border payments by Indian merchants were facilitated under different RBI authorisations. The PA-CB framework:
- Standardised merchant onboarding requirements (Indian KYB)
- Clarified FIRA documentation standards
- Established clear operational and capital requirements for platforms
- Created a defined authorised channel for FEMA purposes
What PA-CB Means for Your Merchant Onboarding
PA-CB platforms must conduct Know Your Business (KYB) verification of Indian merchants before allowing cross-border payment collection. This is why:
- Playto Pay requires PAN, Aadhaar, business registration, and bank account details during onboarding
- KYB typically takes 24-72 hours
- You cannot start collecting international payments until KYB is approved This is regulatory compliance, not bureaucracy — it's what makes the payments FEMA-legal.
FAQ
What is RBI PA-CB licence? Payment Aggregator – Cross Border licence issued by RBI to entities facilitating cross-border payments for Indian merchants. Makes the platform an authorised channel under FEMA for international payment receipt.
Does Playto Pay have RBI PA-CB licence? Yes. Playto Pay is PA-CB licensed, making it a FEMA-authorised channel for Indian businesses receiving international payments.
Why do I need to use a PA-CB licensed gateway? FEMA requires international payments to be received through authorised channels. PA-CB licensed gateways are authorised. Using unlicensed platforms may create FEMA compliance risk and FIRA documentation issues.
How is PA-CB different from a regular payment gateway licence? Regular payment gateway licence (PA licence) covers domestic Indian transactions. PA-CB specifically covers cross-border international transactions. A platform may have both, or just one.