Anshul Sharma

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PA-CB (Payment Aggregator – Cross Border) is an RBI-regulated framework for entities that facilitate cross-border payments through e-commerce channels for permissible import and export transactions involving goods and services.

The RBI introduced the PA-CB framework through its October 31, 2023 circular, bringing entities that facilitate cross-border payments under direct RBI regulation. The framework was introduced under the Payment and Settlement Systems Act, 2007, along with applicable FEMA requirements.

<a></a>How Did the PA-CB Framework Replace the Earlier OPGSP Model?

Before the PA-CB framework, Online Payment Gateway Service Providers (OPGSPs) facilitated certain cross-border transactions through arrangements with Authorised Dealer (AD) banks. The October 31, 2023 framework brought eligible OPGSPs within the PA-CB regulatory framework, subjecting them to direct RBI authorisation and compliance requirements.

<a></a>What Are the Current PA Categories?

Under the RBI (Regulation of Payment Aggregators) Directions, 2025, issued on September 15, 2025, payment aggregators are classified into three categories:

PA-CBs are further classified based on whether they facilitate inward cross-border transactions, outward cross-border transactions, or both, subject to the applicable regulatory requirements.

Key compliance requirements for obtaining a PA-CB license:

A non-bank entity carrying out payment aggregator activities covered by the framework must obtain a Certificate of Authorisation (CoA) from the RBI. Therefore, businesses describing themselves as RBI-authorised PA-CBs should have the relevant RBI authorisation to undertake the activities covered by the PA-CB framework.

What Are the Sub-Categories of RBI PA-CB License?

Under the RBI's current framework, PA-CB activity is divided into inward (PA-CB-I) and outward (PA-CB-O) transactions, with some entities authorised for both.

A PA-CB-I authorisation covers eligible cross-border payments flowing into India. This is the relevant category for Indian freelancers, agencies and exporters that need to receive payments from overseas customers.

A PA-CB-O authorisation covers eligible cross-border payments flowing out of India to overseas merchants. It is relevant when an Indian business uses a platform to pay foreign suppliers or service providers.

Some payment aggregators hold PA-CB-I &amp; O authorisation, allowing them to facilitate eligible inward and outward cross-border transactions. RBI's authorised-entity listings use this notation for entities approved for both directions.

For Indian freelancers, agencies and service exporters receiving payments from foreign clients, PA-CB-I is the relevant sub-category because it covers eligible inward cross-border transactions.

Which Platforms Are on the RBI PA-CB List?

As of January 2026, 19 entities had received final RBI authorisation to operate as Payment Aggregators-Cross Border (PA-CB). The approvals came in distinct waves, starting in July 2024 and accelerating toward the end of 2025.

Cashfree Payments became the first PA-CB license holder on July 22, 2024. Amazon Pay India and Adyen India followed on July 25, both with inward authorisation, while IndiaIdeas.com (BillDesk) received approval for both export and import transactions on July 29.

Pay10 Services received PA-CB authorisation on November 6, 2024, with authorisation for both inward and outward transactions. Worldline ePayments India also received PA-CB authorisation for both directions.

The number of final approvals increased sharply toward the end of 2025. PayGlocal received authorisation for both inward and outward transactions on November 18, 2025. Pine Labs, Easebuzz, PayU Payments and Airpay followed in November. Razorpay received its PA-CB authorisation on December 2, while Paytm Payments Services received authorisation covering online, physical and cross-border payment aggregation in December. Mswipe Technologies was also among the December approvals.

<a></a>Wave 4: December 2025–January 2026

BriskPe received PA-CB-I &amp; O authorisation on December 26, 2025. Skydo received final PA-CB authorisation on January 9, 2026, and was reported at the time as serving 30,000+ MSMEs. Unlimit was also among the entities receiving final PA-CB authorisation during this period. These approvals brought the total number of fully authorised PA-CB entities to 19 by January 2026.

The RBI regularly updates its authorised-entity information. Check the<a href="https://rbi.org.in/Scripts/PublicationsView.aspx?id=12043"> RBI's official authorised entities list</a> for the latest PA-CB status and authorisation category before choosing a provider.

What are the Risks of Using a Platform Not on RBI PA-CB List?

Using a cross-border payment platform that is not appropriately authorised can create legal and regulatory, financial and operational, and security and data risks for Indian businesses.

Skydo as a RBI PA-CB Compliant Platform for Indian Businesses

For Indian businesses looking for a regulated way to receive international payments, <a href="https://www.skydo.com/">Skydo </a>operates under the RBI’s PA-CB framework for inward cross-border transactions. Its features are:

Skydo is a platform suitable for Indian freelancers, agencies, service exporters, goods exporters and online sellers receiving international payments.

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IMPS, NEFT, and RTGS are three electronic payment systems used to transfer money between bank accounts in India, with each designed for different transaction needs. IMPS is built for instant transfers, NEFT handles transfers through periodic settlement batches, and RTGS is designed for high-value payments that settle individually in real time.

Note that all three systems operate within India's domestic banking infrastructure. They are not international payment networks, so a foreign client cannot use IMPS, NEFT, or RTGS as the direct route for sending an international payment to an Indian bank account.

How Do IMPS, NEFT, and RTGS Actually Work?

IMPS, NEFT, and RTGS work differently based on how transactions are processed and settled. IMPS transfers funds immediately, NEFT processes transactions through periodic settlement batches, and RTGS settles each eligible transaction individually in real time.

IMPS, NEFT, and RTGS generally require the beneficiary's name, account number, IFSC code and bank details to make an account-based transfer. The exact information required can vary by bank and payment channel. You can also use the<a href="https://www.skydo.com/blog/what-is-the-utr-number-for-rtgs-and-neft"> UTR number for RTGS and NEFT</a> to track or identify a bank transfer.

<a href="https://www.skydo.com/blog/imps-vs-neft-vs-rtgs">NEFT and RTGS</a> are available through internet/mobile banking and bank branches. IMPS is also available through multiple channels, including mobile and internet banking, ATMs and participating branches.

NEFT is operated by the Reserve Bank of India (RBI), while IMPS is operated by the National Payments Corporation of India (NPCI). RTGS is operated by the RBI.

IMPS, NEFT, and RTGS differ mainly in how they settle transactions, how quickly funds move, their transfer limits, availability, access channels, and charges.

What Are the Transfer Limits and Charges for IMPS, NEFT &amp; RTGS?

IMPS, NEFT, and RTGS have different transfer limits and charges, so the right option depends on how much you need to send and how quickly it needs to arrive.

Use IMPS for urgent domestic transfers of up to ₹5 lakh, NEFT for routine transfers when immediate settlement is not necessary, and RTGS for high-value, time-sensitive transfers of ₹2 lakh or more. The best choice ultimately depends on how quickly the money needs to arrive and how much you are transferring.

IMPS works best when a small domestic payment needs to reach the recipient immediately, regardless of the time or day. For example, you might need to pay a ₹500 utility bill or transfer a small amount to a friend on a Sunday evening. IMPS processes eligible transfers instantly, 24x7, including weekends and bank holidays, so the recipient can receive the money within seconds.

NEFT is a better fit when the payment is routine and does not need to reach the recipient immediately. For example, if you need to pay a ₹2 lakh vendor invoice on a Tuesday morning but can afford to wait, NEFT processes the transaction through half-hourly settlement batches and can cost less than RTGS for an outward transfer.

RTGS is designed for high-value payments where individual, real-time settlement is important. For example, if you need to send a ₹15 lakh property advance that must reach the recipient the same day, RTGS can process the eligible transaction individually without waiting for a batch.

<a></a>Which Transfer Method Should You Choose?

Three simple questions can help you decide which payment system fits your transaction.

Can IMPS, NEFT, or RTGS Receive International Payments?

IMPS, NEFT, and RTGS cannot be used by a foreign client to send an international payment directly to an Indian bank account. These are domestic Indian payment systems designed for transfers within India's banking infrastructure.

<a></a>Why Can't IMPS, NEFT, or RTGS Be Used for International Payments?

The limitation comes from how these payment systems are structured and where they operate.

<a></a>What Should Indian Freelancers and Exporters Use Instead?

Indian freelancers and exporters receiving money from overseas generally have two broad options:

How Does Skydo Help Indian Businesses Receive International Payments?

Skydo helps Indian businesses and freelancers receive international payments through local collection accounts, predictable pricing, faster settlement and built-in compliance support.

These features address a need that domestic payment systems such as IMPS, NEFT and RTGS cannot handle directly. With <a href="https://www.skydo.com/">Skydo</a>, you get:

Additionally, Skydo offers support through channels including WhatsApp and phone, thereby helping Indian businesses and freelancers with payment status, settlement and documentation queries.

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What Is an Inward Remittance Forex Rate for Exporters?

An inward remittance <a href="https://www.skydo.com/blog/7-factors-affecting-forex">forex rate</a> is the rate at which an Indian bank converts foreign currency received from an overseas buyer into Indian rupees and credits it to the exporter's account. For exporters, this rate is called the TT (Telegraphic Transfer) buying rate.

The bank applies the TT buying rate at the moment of settlement. It determines the exact rupee amount that lands in your account after a foreign client pays your invoice.

Say a Pune-based IT services exporter invoices a US client $10,000. The bank applies its TT buying rate of ₹83.20 per dollar instead of the mid-market rate of ₹84.00, so the exporter receives ₹8,32,000 instead of ₹8,40,000. That's ₹8,000 lost before any fees are even deducted.

Which Bank Gives the Best Forex Rate for Exporters in India?

No single bank consistently offers the best forex rate for exporters in India. What matters is the combination of the <a href="https://www.skydo.com/blog/forex-markup-fee-explained">TT buying rate spread</a> over the <a href="https://www.skydo.com/blog/why-do-banks-differ-from-live-fx-rates-in-currency-exchange">mid-market rate</a>, the flat fees charged per transaction, and the timeline for crediting funds.

Currency fluctuations affect your profit margin even when no bank is involved. If you raise an invoice for $10,000 when USD/INR is 83, you expect ₹8.3 lakh. If the rate drops to 80 by the time payment arrives, you receive ₹8 lakh. That's a ₹30,000 shortfall with no bank fee involved at all.

The direction of the move matters. A weaker rupee benefits exporters by making their goods and services cheaper for foreign buyers. A product priced at ₹10,000 costs a foreign buyer $133 at 75 USD/INR but only $125 at 80 USD/INR. A stronger rupee compresses margins.

Currency volatility also forces exporters to maintain larger cash reserves for working capital, tying up funds that could otherwise be deployed in operations.

What Are the Hidden Bank Fees Eating Into Your Export Earnings?

Beyond the forex spread, banks layer on <a href="https://www.skydo.com/blog/hidden-fees-in-bank-rates">additional charges</a> that are deducted silently before funds reach your account, so the amount credited is always less than what your foreign buyer sent.

How Much Does a Bank's Forex Spread Actually Cost on a $10,000 Invoice?

A bank's forex spread costs Indian exporters ₹8,000–₹16,000 per transaction on a $10,000 invoice when the spread is 1–2% below the mid-market rate. That's before any flat fees are added on top.

Here is the scenario. An exporter <a href="https://www.skydo.com/blog/how-to-choose-the-right-currency-exchange-rate-for-invoicing">invoices a US client</a> $10,000, and the mid-market rate (RBI reference rate) on the day of settlement is ₹84.00 per dollar. The three routes below show what lands in the account after <a href="https://www.skydo.com/blog/how-much-forex-fees-do-you-pay-on-global-transactions">forex fees</a>.

The rupee difference between a bank settlement and a Skydo flat-fee settlement on a single $10,000 invoice can range from ₹5,000 to ₹13,000. That difference compounds across every invoice an exporter raises in a year.

Unlike banks, Skydo charges a flat fee with no forex spread, so the exporter knows exactly what they will receive before the payment is processed.

If you want to see how that looks on your own invoices, check <a href="https://www.skydo.com/">Skydo's flat-fee pricing</a>. On a $10,000 invoice the fee is a flat $29 with no forex spread. You get a free Foreign Inward Remittance Advice (FIRA) certificate issued instantly, you don't need to switch your primary bank account, and setup takes 10 minutes.

Banks vs Fintech Platforms: Which Gives Better Forex Rates

Fintech platforms built specifically for inward remittances give exporters better effective forex rates than banks. They do this by charging a flat fee instead of building their margin into the exchange rate spread.

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What Is Export Payment Reconciliation in Xero?

Export payment reconciliation in Xero is the process of matching and verifying the international payment receipts recorded in Xero against the actual credits in your bank account, so the two sets of records agree with zero unexplained variance.

For Indian freelancers and service exporters, the need comes up after a foreign client pays an invoice. The amount that lands in your bank account almost never equals the invoiced amount, because of bank charges and exchange rate differences. Reconciliation is how you account for that gap officially in your books.

Take a Bengaluru-based freelancer who raises a $3,000 USD invoice. The client pays in full, but only ₹2,43,500 is credited after a $25 intermediary bank deduction and a slightly different RBI reference rate. Reconciliation is the step that closes that gap in Xero without leaving a ghost difference on the balance sheet.

Why Export Payment Reconciliation Matters?

Export payment reconciliation matters because the amount credited to your bank rarely matches the invoice value, and four variables cause that gap: bank charges, exchange rate differences, agreed deductions or discounts, and partial payments. Each one must be recorded separately in Xero. If none of them are, Xero carries a permanent unreconciled difference on the balance sheet.

Reconcile each inward remittance against the exact RBI reference rate on the credit date. That is the rate that will appear on your Foreign Inward Remittance Certificate (FIRC), and it must match your Xero entry.

Leaving these gaps unrecorded also creates problems during FEMA compliance checks and <a href="https://www.skydo.com/blog/fira-gst-refund-saas-exporters-india">GST refund claims</a>, because your books won't match <a href="https://www.skydo.com/blog/export-realisation-guide">bank realization records</a>.

What Documents Do You Need Before You Start Reconciling in Xero?

Before you reconcile <a href="https://www.skydo.com/blog/cross-border-payments">cross-border payments</a> in Xero, you need two groups of items: source financial records and Xero setup prerequisites. The records are bank statements, sales invoices and receipts, bills and expense receipts, the previous reconciliation report, loan and credit card statements, and records of unrecorded items. The setup prerequisites are verified opening balances, all transactions already entered in Xero, and an active bank feed or an imported bank statement.

You do not need to wait for the month to close to reconcile. Reconciling transaction by transaction as credits arrive is cleaner and faster to audit.

How Export Reconciliation Works in Xero? A Step-by-Step Guide

Export reconciliation in Xero means matching payment data that has arrived in your bank account, or synced from a <a href="https://www.skydo.com/blog/third-party-payment-export-transactions">third-party payment platform</a>, against your Xero general ledger so that the variance column reads zero. It takes five steps: export data or run reports from Xero, extract or align external data, compare totals and identify variances, reconcile and clear variances, and verify the final status.

The steps below use a running $3,000 USD freelance invoice as the example throughout.

Step 1: Export Data or Run Reports From Xero

Step 3: Compare Totals and Identify Variances

Bank Wire vs Skydo on the Same $3,000 Invoice

If hidden bank charges are the reason your received amount never matches your invoice, <a href="https://www.skydo.com/">Skydo's</a> fee is known before the payment lands, making every Xero reconciliation a single clean line match.

How Does Skydo Help Receive International Payments?

Reconciliation gets harder when the amount that lands in your account rarely matches the invoice, because traditional bank wires carry unpredictable intermediary charges and delayed documentation. <a href="https://www.skydo.com/">Skydo</a> is built to remove that uncertainty at the source.

Skydo is a cross-border payment aggregator that helps Indian freelancers and exporters <a href="https://www.skydo.com/blog/payment-gateway-for-international-payments-india">receive international payments</a>. It does not send money abroad.