{"id":16630,"date":"2023-11-03T09:14:39","date_gmt":"2023-11-03T03:44:39","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=16630"},"modified":"2025-04-04T22:15:59","modified_gmt":"2025-04-04T16:45:59","slug":"pa-cb","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/pa-cb\/","title":{"rendered":"Payment Aggregator-Cross Border (PA-CB)"},"content":{"rendered":"<h2>About Payment Aggregator-Cross Border (PA-CB)<\/h2>\n<ul>\n<li>PAs-CB\u00a0facilitates cross-border online payments\u00a0for import and export\u00a0of permissible\u00a0goods and services.<\/li>\n<li>The RBI has set a\u00a0minimum net worth requirement of Rs 15 crore for these entities, which will be categorized as PA-CB.<\/li>\n<li>They will be\u00a0accountable for ensuring\u00a0that they\u00a0do not facilitate payment transactions\u00a0for the import of any restricted or prohibited\u00a0goods and services.<\/li>\n<li>If the amount involved\u00a0exceeds Rs 2.5 lakh,\u00a0the PA-CB must carry out due\u00a0diligence on the buyer as well.<\/li>\n<\/ul>\n<h2>What is a Payment Aggregator (PA)?<\/h2>\n<ul>\n<li>A PA (also known as a\u00a0merchant aggregator) is a\u00a0third-party service provider that\u00a0allows merchants to accept payment from customers\u00a0by integrating it into their websites\u00a0or apps.<\/li>\n<li>It\u00a0facilitates different types of payment transactions, including cash\/cheque, online payments through multiple payment sources, or offline touchpoints.<\/li>\n<li>It\u00a0allows merchants to accept bank transfers\u00a0without setting up a bank-based merchant account. It means a merchant need not have a merchant account directly with the bank.<\/li>\n<li>A PA in India is\u00a0incorporated under the Companies Act 2013.<\/li>\n<li>A PA\u00a0can be a bank or a non-bank entity.<\/li>\n<li>Since a PA handles funds,\u00a0it requires a license from the RBI.\u00a0<\/li>\n<li>Only non-bank payment aggregators require unique authorization from RBI as \u2018handling funds\u2019 is considered a part of the normal banking relationships for bank PAs.<\/li>\n<li>Examples:\u00a0Amazon (Pay) India, Google India, Razorpay, Pine Labs, etc.<\/li>\n<\/ul>\n<h2>What is a Payment Gateway?<\/h2>\n<ul>\n<li>It is a\u00a0software service that\u00a0connects your bank account to the platform where you need to transfer your money.\u00a0<\/li>\n<li>It\u00a0authorizes you to conduct an online transaction\u00a0through different payment modes like net banking, credit card, debit card, UPI, or other online wallets.<\/li>\n<li>A Payment gateway\u00a0plays the role of a third party that securely transfers your money\u00a0from the bank account to the merchant\u2019s payment portal.<\/li>\n<\/ul>\n<h2>Payment Aggregator v\/s Payment gateway<\/h2>\n<ul>\n<li>A\u00a0payment gateway is a software that allows online transactions to take place, while a payment aggregator is the inclusion of all these payment gateways.<\/li>\n<li>While\u00a0a payment gateway is an intermediary, the payment aggregator is the interface where the payment gateway processes the transactions.\u00a0<\/li>\n<li>Most payment aggregators own payment gateways to offer various exclusive services to their merchant customers.<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1) What is Unified Payments Interface (UPI)?<\/h3>\n<p>UPI is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing &amp; merchant payments into one hood. It also caters to the \u201cPeer to Peer\u201d collect request which can be scheduled and paid as per requirement and convenience. Each Bank provides its own UPI App for Android, Windows and iOS mobile platform(s).<\/p>\n<p><strong>Source:<\/strong> <a href=\"https:\/\/www.thehindubusinessline.com\/money-and-banking\/rbi-to-oversee-all-cross-border-payment-services\/article67484314.ece\" target=\"_blank\" rel=\"nofollow noopener\"><u>RBI to oversee all cross-border payment service<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Payment Aggregator-Cross Border facilitates cross-border online payments for import and export of permissible goods and services.<\/p>\n","protected":false},"author":5,"featured_media":16631,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-16630","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/16630","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=16630"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/16630\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/16631"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=16630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=16630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=16630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}