RBI selects 8 firms for ‘Test Phase’ in the second cohort on Cross Border Payments under sandbox

The Reserve Bank of India (RBI) has selected eight entities for the ‘Test Phase’ for the Second Cohort under Regulatory Sandbox for Cross Border Payments. The central bank had opened applications earlier in December last year.

RBI received 27 applications from 26 entities of which eight entities have been selected for the ‘Test Phase’.

RBI said that the entities shall commence testing their products from the third week of September 2021.

These entities and their products are:

1. Book My Forex – The product facilitates fully online outward cross-border remittances to bank accounts and debit/ prepaid cards overseas using VISA Direct and Master Card Send via the digitisation of the process including digital KYC/ AML verification.

2. Cashfree Payments India – The product extends a cross-border payment platform to facilitates the purchase of assets listed on foreign exchanges (e.g NASDAQ) like publicly listed shares, exchange-traded funds i.e. ETFs and units of mutual funds, securities by Indian investors via local payment methods.

3. Fairex Solutions – The product provides an aggregation platform of leading cross-border payment providers for outward remittance.

4. Flyremit – The product is an online outward cross-border remittance platform for individuals as well as for businesses and facilitates digitization of the remittance process including digital KYC verification.

5. Nearby Technologies – The product ‘Paynearby’ facilitates routing the inward cross-border remittance to the beneficiary’s Aadhaar number as a virtual bank account using the existing RDA mechanism.

6. Open Financial Technologies – The product proposes a Blockchain-based Cross border payment system, leveraging the current infrastructure and ensures frictionless and tamperproof monitoring capabilities.

7. SoCash India – The product is primarily aimed at inbound and outbound tourists to/from India to facilitate cross-border retail merchant payments and cash withdrawal at select merchant outlets in India and Singapore.

8. Wall Street Finance – The product ‘WSFx SecuSmart REMIT’ facilitates contactless outward cross-border remittances with digital customer onboarding and remittance processing through a completely digital process.

Last year, on December 16, RBI announced that the Cohort is expected to spur innovations capable of recasting the cross-border payments landscape by leveraging new technologies to meet the needs of a low cost, secure, convenient and transparent system in a faster manner.

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( With inputs from indiainfoline)