PR Newswire
20 Jul 2022, 23:47 GMT+10
BENGALURU, India, July 20, 2022 /PRNewswire/ -- Cashfree Payments, a leading payments and API banking solutions company, today announced that it has received a go-ahead from the Reserve Bank of India (RBI) for its cross border payments product. The approval comes upon the company successfully piloting the solution during RBI's Second Cohort under the Regulatory Sandbox on cross border payments. The product will enable Indian fintech companies to offer the purchase of shares, exchange-traded funds (ETF) units and other assets listed on foreign exchanges via UPI/ Net Banking as a feature to Indian investors. The cross border investments will fall under the ambit of RBI's Liberalized Remittance Scheme (LRS). As per the RBI, the product can be considered for adoption by regulated entities subject to compliance with applicable regulatory requirements.
One of the most tedious steps for Indians looking to invest in foreign stocks has been funding their overseas accounts. Traditionally, this process needs filling up A2 forms, paying high fixed fees, and even visiting a bank branch in many cases. Cashfree Payments' solution makes the process of payments via UPI, Net Banking and LRS compliance integrated, seamless and fully digital. Investors can start investing with small amounts, as little as INR 1000. The solution also offers savings on foreign transaction (FX) fees and faster settlements for access to funds.
With this model, the investors will be able to simply login to an App integrated with the Cashfree Payments, complete their basic KYC to begin transferring in Indian currency (INR). The company will then convert this transferred amount into foreign currency, like USD, and remit it to the foreign broker, allowing investors to successfully buy international stocks.
While US stocks, mostly of large tech and pharma companies, are the most popular with Indian investors, Cashfree Payments is working with multiple Indian fintech platforms looking to offer cross border investing as a feature.
Reeju Datta, Co-founder, Cashfree Payments said, "We are delighted to have successfully completed the test phase of RBI's Second Cohort under the regulatory sandbox on Cross Border Payments. This achievement validates our efforts to constantly build innovative and effective solutions in the payments ecosystem. Our cross-border payments platform intends to make investing in foreign stocks a lot simpler and convenient, allowing retail investors to make payments via local payment methods. The product was evaluated on varying parameters, and clearing the evaluation further reiterates the resilience and agility that is a trademark of the Cashfree Payments systems. We look forward to working with the Indian fintech ecosystem and offer access to international investments to Indian investors."
SOURCE Cashfree Payments
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