What is a Payment Aggregator, Cross Border (PA-CB)?
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Short answer
A Payment Aggregator, Cross Border (PA-CB) aggregates cross-border payments for current account transactions for its onboarded merchants through e-commerce mode.1 RBI's definition of merchant includes exporters.1 PA-CBs are regulated under RBI's Master Direction on Regulation of Payment Aggregator dated 15 September 2025.1 Each PA-CB transaction is capped at ₹25 lakh.1
| Full form | Governed by | Who needs it | Where it is used | Related terms |
|---|---|---|---|---|
| Payment Aggregator, Cross Border | RBI Master Direction on Regulation of Payment Aggregator, 15 September 20251 | Exporters collecting from abroad through a non-bank platform | Platform checkouts, payment links and collection accounts that settle to India1 | Payment gateway, OPGSP, Inward Collection Account, KYC, AD bank |
When a Bengaluru SaaS founder collects subscriptions from customers in Germany, or a freelance illustrator gets paid through a platform's checkout, the company in the middle that collects the money abroad and pays it out in India is often a PA-CB. RBI decides who may do this.1
What does a PA-CB mean in simple words?
A PA-CB is a regulated company that collects a foreign client's payment and settles it to an Indian exporter. RBI's Master Direction on Regulation of Payment Aggregator (15 September 2025) defines a payment aggregator as an entity that aggregates payments made by customers to merchants and then settles the collected funds to those merchants.1
- Cross-border: a PA-CB does this for cross-border current account transactions, not prohibited under FEMA, through e-commerce mode.1
- Merchants: the definition of merchant expressly includes exporters.1
For example, a design studio paid through a platform's checkout by a client in Germany is a merchant of that platform.
Why does a PA-CB matter for Indian exporters and freelancers?
A PA-CB matters because it is a regulated alternative to receiving a bank wire, with its own limits and settlement rules.1
- Transaction cap: each inward or outward PA-CB transaction is capped at ₹25 lakh.1
- Bank compliance: the PA-CB must give your AD bank the information needed to close the export entry.1
- KYC: the PA-CB carries out customer due diligence of each merchant under RBI's KYC rules.1
A PA-CB changes how money reaches you, while your FEMA duties stay the same.13
How does a PA-CB work?
A PA-CB works by collecting payments abroad, holding them in India with a bank, and settling them to the exporter. There are two sub-types: a PA-CB facilitating inward transactions handles money coming into India, which is what exporters use, and one facilitating outward transactions handles imports.1
| Rule | Paragraph |
|---|---|
| Maximum ₹25 lakh per inward or outward transaction | 11(d) |
| Inward collections held in an Inward Collection Account (InCA) with an AD Category-I bank | 16(a) |
| Settlement timelines must be stated in the agreement with the merchant | 16(a), Table 1 |
| Non-INR settlement only for exporters the inward PA-CB onboarded directly | 11(i) |
| Customer due diligence of each merchant under RBI's KYC rules | 13 |
All rows come from the 2025 Master Direction.1 The full rulebook is summarised in RBI PA-CB guidelines.
How do you check a PA-CB before using it?
You check a PA-CB on RBI's list of authorised payment aggregators, which shows each entity's category.2
- Category: look for inward authorisation, shown as PA-CB-I or PA-CB-I & O.2
- Banks: a bank does not need PA authorisation under paragraph 5(a).1
- Agreement: read the settlement timelines in your written agreement.1
Who holds a licence is tracked in the PA-CB licence list.
What is the difference between a PA-CB and a payment gateway?
A PA-CB handles funds and needs authorisation, while a payment gateway only provides the technology to route a payment without handling funds and is outside the Master Direction.1
| Entity | Handles funds | RBI authorisation | Best for |
|---|---|---|---|
| PA-CB | Yes, collects and settles cross-border payments | Required for non-banks | Exporters collecting from foreign clients through a platform |
| Payment gateway | No, routes and processes only | Outside the Master Direction | Technology layer behind a checkout |
| Card payment settled in local currency by the card network | Aggregator receives local currency | Not treated as PA-CB activity | Card payments where the card network handles the foreign exchange |
The table draws on paragraphs 4, 5 and 10 of the Master Direction.1 See what is a payment gateway and PA-CB vs OPGSP.
What do people get wrong about a PA-CB?
People often assume a PA-CB handles all export compliance for them. From 1 October 2026, the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 require every service exporter to file an Export Declaration Form and to realise the invoice value within nine months of the invoice date, or twelve months for rupee invoicing.34
- Large invoices: an invoice above ₹25 lakh exceeds the per-transaction cap.1
- Currency of payout: non-INR settlement is limited to directly onboarded exporters.1
Which terms are related to a PA-CB?
These terms describe the rules and entities around a PA-CB:
- Payment gateway: technology that routes a payment without handling funds.1
- PA-CB vs OPGSP: how the older OPGSP arrangement compares.1
- KYC: the due diligence a PA-CB carries out on each merchant.1
- Authorised Dealer bank: the bank that holds the Inward Collection Account.1
- EDF: the Export Declaration Form every service exporter files.3
How did we verify this?
We checked this page against the sources below on 30 October 2026. Read our methodology or report an error.
- [1]RBI: Master Direction on Regulation of Payment Aggregator, CO.DPSS.POLC.No.S-633/02-14-008/2025-26 dated 15 September 2025 (paragraphs 4, 5, 10, 11, 13 and 16)
- [2]RBI: Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007, Payment Aggregators section (checked 28 October 2026)
- [3]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, amended up to 22 September 2026
- [4]RBI: FEMA (Export and Import of Goods and Services) (Amendment) Regulations, 2026, Notification No. FEMA 23(R)/(1)/2026-RB dated 22 September 2026
Frequently asked questions
How do I check whether a platform is an authorised PA-CB?+
Look the platform up on RBI's list of authorised payment aggregators, published under the Payment and Settlement Systems Act, 2007. RBI marks cross-border entities as PA-CB-I for inward transactions, PA-CB-O for outward transactions, or PA-CB-I & O for both. Exporters need inward authorisation.2
Does a bank need PA-CB authorisation to collect export payments?+
No. Paragraph 5(a) of RBI's Master Direction on Regulation of Payment Aggregator says a bank does not require authorisation to carry out payment aggregator business. Non-bank entities that collect and settle cross-border payments for merchants do need RBI authorisation as a PA-CB.1
Can a PA-CB settle export payments to me in US dollars?+
A PA-CB can settle in US dollars or another non-INR currency only if the inward PA-CB onboarded you directly. Paragraph 11(i) of RBI's Master Direction on Regulation of Payment Aggregator permits settlement in non-INR currencies only for those merchants, so ask the platform how it onboarded you.1
Do I still file an EDF if I am paid through a PA-CB?+
Yes. From 1 October 2026, every service exporter gives an Export Declaration Form under the 2026 Regulations, whatever the payment channel, including a PA-CB. The export must also be realised within nine months of the invoice date, or twelve months for rupee invoicing.34
What did the PA-CB framework replace for export collections?+
The PA-CB framework replaced the older Online Payment Gateway Service Provider (OPGSP) arrangement. The 2025 Master Direction repealed the October 2023 PA-CB circular and the OPGSP circulars of 2010, 2013 and 2015, keeping them alive only for PA-CBs that applied by 30 April 2024 and still await a decision.1
This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.
Keep reading
What do RBI's PA-CB guidelines mean for Indian exporters?
RBI's 15 September 2025 Master Direction on Payment Aggregators explained for Indian service exporters: PA-CB rules, ₹25 lakh limit, InCA, settlement and EDPMS.
RBI and FEMAWhich companies hold an RBI PA-CB authorisation?
Which payment aggregators RBI has authorised for cross-border (PA-CB) inward and outward payments, as shown on RBI's own pages on 28 October 2026.
RBI and FEMAWhat is the difference between a PA-CB and an OPGSP?
How RBI's Payment Aggregator Cross Border (PA-CB) regime differs from the old OPGSP arrangement: licensing, limits, settlement, accounts and what exporters should check.
RBI and FEMAHow do I check if a payment aggregator is authorised by RBI?
A step-by-step way for Indian exporters to check a payment aggregator's RBI authorisation, PA-CB category and application status on RBI's own website.
GlossaryWhat is a payment gateway?
RBI defines a payment gateway as technology that routes and processes a payment without handling funds. How it differs from a payment aggregator or PA-CB for exporters.