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Tag: Reserve Bank of India

  • PNB Strengthens Digital Security with Migration to New ‘bank.in’ Domain

    On 19 August, Punjab National Bank said that it has chosen the domain name bank.in and that, instead of using the current www.pnb.co.in, its website will now be www.pnb.bank.in.

    PNB Strengthens Digital Security

    “In accordance with the RBI circular on ‘Migration to ‘.bank.in’ Domain’ dated April 22, 2025, and with the assistance of the Institute for Development and Research in Banking Technology (IDRBT), which is the sole registrar for this domain, the bank has successfully moved its corporate website to the ‘.bank.in’ domain (https://pnb.bank.in),” the bank said in a statement. It further stated that this is a major turning point in the digital transformation of the Indian banking industry.

    PNB Becomes First Public Sector Bank to Move to ‘.bank.in’

    With the recent change, PNB has reaffirmed its dedication to providing its clients with safe and secure digital banking by being the first public sector bank in India to move its corporate website to the secure “.bank.in” domain. Only banks are allowed to use the “.bank.in” domain, which offers better protections against fraud, fortifies the cyber security architecture, and boosts public trust in online banking.

    Why RBI Introduced the ‘.bank.in’ Domain?

    PNB took this action in response to the RBI’s statement that rising rates of digital payment fraud are a serious concern in its development and regulatory policies following the monetary policy committee meeting on February 7 of this year. The RBI is launching the “bank.in” special domain for Indian banks in an effort to counteract this.

    Benefits of the ‘.bank.in’ Domain for Customers

    By streamlining safe financial services and lowering cybersecurity risks and criminal activities like phishing, this programme seeks to increase public confidence in online banking and payment systems.

    Role of IDRBT as the Exclusive Registrar

    The sole registrar will be the Institute for Development and Research in Banking Technology (IDRBT). The real registration process will start in April 2025. Bank-specific instructions will be released separately. According to the RBI, other non-bank organisations in the financial industry will eventually have their own domain, “fin.in”.

    Quick
    Shots

    •Move in line with RBI’s April 22,
    2025 circular on migration to “.bank.in” domains.

    •PNB becomes the first public sector
    bank in India to adopt the “.bank.in” domain.

    •Exclusive to banks, preventing misuse
    by fraudulent sites.

    •Rising cases of digital payment
    frauds flagged in RBI’s Feb 7 MPC meeting prompted the move.

    •Strengthened cyber security
    framework.

  • RBI Panel Recommends AI Policy Framework to Transform India’s Finance Sector

    An expert group at the Reserve Bank of India has been looking for a comprehensive AI policy framework for the financial sector in light of the growing prevalence of AI-led innovation across many industries. Such a framework would offer adaptable, future-focused direction on AI innovation, adoption, and risk reduction in the medium term.

    The committee, which was established to create a framework for the ethical and responsible enablement of artificial intelligence (FREE-AI) in the financial sector, recommends that all regulated entities under the RBI establish a common infrastructure in order to democratise access to computing and data, which will ultimately result in an AI innovation sandbox.

    “To act as a single point of reference for regulated entities and the larger FinTech ecosystem on the responsible design, development, and deployment of AI solutions, the RBI may consider issuing consolidated AI Guidance,” the committee stated in the study.

    Why RBI is Pushing for an AI Policy?

    The committee believed that a lenient supervisory approach may be restricted to a single mistake or an isolated anomaly, but that it must be rejected in the event of recurrent violations, egregious carelessness, or failure to address the concerns that were found.

    In essence, the panel wants banking operations to be examined more closely and would rather that AI take care of this task, albeit with some tact and judgement.It’s not like the expert panel or the RBI are attempting to impose broad regulations on AI-driven advances.

    The research briefly states that while multi-modal and multilingual AI can improve the delivery of financial services nationwide, AI offers fresh approaches to fundamental developmental difficulties. “AI has a lot to offer when applied properly. Without safeguards, it can increase already-existing risks and create new ones.

    Key Elements of the FREE-AI Framework

    The seven sutras are as follows: (a) confidence in the foundation; (b) prioritising people; (c) creativity over restraint; (d) equity and justice; (e) responsibility; (f) intelligible by design; and (g) sustainability, safety, and resilience. The panel noted that risk minimisation and innovation should be viewed as complementary forces rather than as opposing goals. According to the RBI’s report, this is accomplished via a single, cohesive vision that is dispersed among six strategic pillars that address risk reduction and innovation enablement.

    Six Strategic Pillars of Risk & Innovation

    Infrastructure, policy, and capacity are the main focusses of innovation enablement, while governance, protection, and assurance are the main focusses of risk mitigation. The report presents 26 recommendations for the financial sector’s deployment of AI under these six pillars.Building institutional capacity at all levels, developing AI models tailored to the domestic financial sector, formulating an AI policy to provide regulatory guidance, and establishing a tolerant approach to compliance for low-risk AI solutions to promote inclusion are some of the report’s 26 specific recommendations.

    The panel’s recommendations for risk mitigation efforts include establishing a board-approved AI policy for all regulated businesses, extending product approval procedures, incorporating AI into consumer protection frameworks and audits, strengthening cybersecurity and incident reporting, establishing strong governance networks throughout the AI lifecycle, and raising consumer awareness of the application of AI in the financial sector.

  • AU Small Finance Bank Shares Jump 7% as RBI Grants Universal Bank Licence Approval

    The RBI’s in-principle approval of AU Small Finance Bank’s conversion from a Small Finance Bank to a Universal Bank caused its shares to soar by more than 7% on 8 August. In the first trade, shares of AU Small Finance Bank surged up to 7.52% to INR 800.00 per share on the BSE.

    First Small Finance Bank to Receive Universal Bank Licence Nod

    The Reserve Bank of India (RBI) has given AU Small Finance Bank in-principle clearance to convert from a Small Finance Bank (SFB) to a Universal Bank, the bank announced in a regulatory filing on August 7.

    The RBI’s approval follows the bank’s letter from September 3, 2024, asking the Indian Central Bank for a universal bank licence. AU Small Finance Bank is the first SFB to obtain in-principle approval to become a Universal Bank with this approval, which was obtained on August 7.

    AU Bank’s Statement on RBI’s Decision

    According to a press statement from AU Small Finance Bank, this regulatory approval is a powerful affirmation of AU’s competent governance, solid business strategy, and unwavering dedication to financial inclusion.

    More significantly, it validates AU’s development as a comprehensive bank that provides the full range of banking services and products that modern consumers want, including business, retail, and digital solutions. On September 3, 2024, the lender submitted an application to the RBI to voluntarily convert from a Small Finance Bank to a Universal Bank.

    Eligibility Criteria for Universal Bank Status

    A Small Finance Bank (SFB) must maintain a minimum net worth of INR 1,000 crore, have a satisfactory performance history for at least five years, and be listed on stock exchanges in order to meet the requirements to become a Universal Bank.

    Furthermore, in each of the previous two fiscal years, the SFB must have reported Net Non-Performing Assets (NNPA) of no more than 1% and Gross Non-Performing Assets (GNPA) of no more than 3%.

    AU Bank’s Journey from Vehicle Finance to Full-Service Banking

    In 1996, AU Bank was established as a vehicle finance firm, marking the beginning of its history. April 2017 saw its conversion to a small finance bank, and on July 10 of the same year, it went public on stock exchanges.

    In FY25, their net profit was INR 1,592 crore, up from INR 1,428 crore in the previous fiscal year. INR 581 crore was the net profit for the fiscal year’s first quarter. By the end of June, its gross non-performing assets (NPA) had increased from 1.78% to 2.47%. Compared to 0.63%, net NPA was 0.88%.

    AU Bank’s capital adequacy requirement would decrease from 15% upon becoming a universal lender, and the priority sector lending target would drop from 60% to 40%. Therefore, the requirement that at least 50% of the loan portfolio be made up of loans less than INR 25 lakh would also not be applicable.

  • RBI Proposes Stricter Digital Banking Rules to Curb Cyber Fraud & Boost Customer Safety

    To make digital banking safer for all users, the Reserve Bank of India (RBI) has released a draft of new regulations. Internet banking, mobile banking, and any other online services provided by banks are covered by the new regulations.

    The new regulations require banks to provide consumers with clear options, allowing them to choose between using full transaction services or simply “viewing only” their accounts. People who only want a basic service, like a debit card, cannot be forced to adopt digital banking by their banks.

    Applauding the move, Shikhar Aggarwal, Chairman, BLS E-Services Ltd stated, “The RBI’s proposal of New Digital Banking Guidelines to curb cyber fraud is a significant step toward safeguarding customers in the digital banking space. The guidelines introduce stronger fraud protection measures, ensuring banks comply with enhanced customer protection protocols, including limiting liability in cases of fraud.”

    Adding further he opined, “A key highlight of the proposal is the prohibition on banks from displaying third-party products or services—including those from promoter groups or affiliated entities—on their digital platforms. This move aims to reduce conflicts of interest and enhance transparency. Additionally, banks offering mobile banking services outside dedicated apps must ensure network independence, allowing seamless access for customers across all telecom providers.”

    Additionally, the RBI wants banks to obtain clients’ explicit consent before allowing them to use any digital services. Each and every consumer must be informed of all fees, how to contact support in the event of an issue, and how to receive transaction alerts via email or SMS. Another crucial fact is that without RBI approval, banks are not allowed to promote third-party products on their applications or websites, such as investment plans or insurance.

    All banks must employ appropriate fraud detection systems and monitor anomalous transactions in order to prevent online fraud. In order to promptly identify any unusual activity, they should also research how clients typically spend their money. On July 21, the RBI shared these proposed rules. By August 11, 2025, the central bank wants banks, professionals, and the general public to submit their recommendations.

    Sharing his views on the development, Tushar Sharma, Co-founder of Bondbay (platformed by Dexif Securities) stated, “We welcome the RBI’s proposed digital banking guidelines, which emphasise strong risk controls and customer consent. These measures highlight the critical importance of regulatory alignment—a clear, predictable framework empowers innovators to build securely and responsibly. As a fintech leader operating in the cloud ecosystem, I believe digital security isn’t just about compliance—it’s about smart design choices that embed trust. Tools like OTP-based logins, penny-drop account verifications, name-matching protocols, and Aadhaar-enabled video KYC offer robust, scalable ways to prevent fraud while ensuring smooth onboarding. These safeguards, when implemented thoughtfully, strike the right balance between user experience and security. The RBI’s consultative, forward-thinking approach signals that India is serious about creating a resilient digital financial backbone. By providing regulatory clarity and encouraging secure-by-design systems, the guidelines empower fintecs to innovate responsibly.”

    What This Means for Digital Banking Users?

    Users of online banking should anticipate more stringent security protocols and fewer unpleasant surprises if these regulations are implemented. They will be able to choose just the digital services they truly desire. Everyone will benefit from easier and more equitable banking since no one will be compelled to sign up for something they don’t need.

    Banks to Implement DoT’s Fraud Risk Indicator

    The RBI has instructed banks and payment institutions to incorporate the telecom department’s (DoT) financial fraud risk indicator (FRI) into their systems in light of the increasing number of cybercrimes.

    The RBI guideline, released on June 30, seeks to use cutting-edge technologies to combat cybercrime. The DoT hailed the action as a turning point. In a statement, the DoT claimed that the RBI’s directives mark a turning point in the battle against financial crimes made possible by cyberspace and demonstrate the effectiveness of interagency cooperation in protecting individuals in India’s expanding digital economy.

    FRI is a risk-based statistic that was introduced in May and links a cellphone number to the level of financial fraud. Data from DoT’s Chakshu platform, the government’s cybercrime reporting portal, and information provided by banks and financial organisations are used to highlight the numbers.

    This makes it possible for the appropriate parties to take further consumer protection steps to stop financial frauds committed using high-risk mobile numbers.

    Real-time FRI allows banks and other financial institutions to take preventative steps like rejecting suspicious transactions, warning or alerting clients, and postponing high-risk transactions.

  • BlackBuck Subsidiary Gears Up for Digital Payments with RBI’s PPI Nod

    The Reserve Bank of India (RBI) has granted a prepaid payment instruments (PPI) licence to Zinka Logistics, a subsidiary of listed logistics giant BlackBuck.

    The business stated in an exchange statement that its fully owned subsidiary, TZF Logistics Solutions Pvt Ltd, was awarded the licence by the central bank. Banks and non-banks cannot issue PPIs without a licence under the Payment and Settlement Systems Act of 2007.

    To put it in perspective, PPIs enable remittance facilities, conduct financial activities, assist the purchase of goods and services, and more, all of which are facilitated by the value they store.

    The Move will Assist TZF Logistics to Run Payment System More Effectively

    According to BlackBuck’s petition, the licence will assist the company’s fully owned subsidiary TZF Logistics Solutions Pvt Ltd, in setting up and running a payment system for prepaid payment instruments.

    The RHP that BlackBuck submitted in November of last year states that TZF Logistics is in the transportation industry, offering clients a platform to rent various vehicles such as trucks, lorries, containers, cars, fleet taxis, and more. After being established in 2018, TZF Logistics reported a loss of INR 17.5 Lakh in FY24.

    Although BlackBuck didn’t say exactly how it would use the PPI licence, it is probably going to give it to truckers so they can pay for fuel and FASTag.

     BlackBuck, which was founded in 2015 by Rajesh Yabaji, Chanakya Hridaya, and Ramasubramaniam B, began as an online truck aggregator before growing to include a wide variety of load management, telemetry, payment, and vehicle financing products.

    BlackBuck’s Business Operations

    BlackBuck links small and large companies with shipping needs with truck fleet operators. Transparency about fuel costs, charges, truck safety, and tracking is frequently lacking among truck operators.

    BlackBuck provides fuel cards and FASTag payments, GPS tracking and truck theft protection systems, verified communication channels between the shipper and the trucker, and vehicle financing options to address these problems. Commissions, platform fees, and subscriptions are how the business makes money.

    In FY24, it had a 27.52% market share in the domestic goods sector. With a net profit of INR 280.1 Cr in Q4 FY25, the company generated a profit after reporting a loss of INR 90.8 Cr in the same quarter the previous year.

    A tax credit of INR 245 Cr was also included in the profit figure. In the meantime, operating revenue increased from INR 93.2 Cr in Q4 FY24 to INR 121.8 Cr, a 30.6% increase.

  • RBI Mandates Banks to Use DoT Tool in Fight Against Cyber Frauds

    The RBI has instructed banks and payment institutions to incorporate the telecom department’s (DoT) financial fraud risk indicator (FRI) into their systems in light of the increasing number of cybercrimes.

    The RBI guideline, released on June 30, seeks to use cutting-edge technologies to combat cybercrime. The DoT hailed the action as a turning point. In a statement, the DoT claimed that the RBI’s directives mark a turning point in the battle against financial crimes made possible by cyberspace and demonstrate the effectiveness of interagency cooperation in protecting individuals in India’s expanding digital economy.

    FRI is a risk-based statistic that was introduced in May and links a cellphone number to the level of financial fraud. Data from DoT’s Chakshu platform, the government’s cybercrime reporting portal, and information provided by banks and financial organisations are used to highlight the numbers.

    This makes it possible for the appropriate parties to take further consumer protection steps to stop financial frauds committed using high-risk mobile numbers.

    Real-time FRI allows banks and other financial institutions to take preventative steps like rejecting suspicious transactions, warning or alerting clients, and postponing high-risk transactions.

    FRI Already Deployed on Fintech Platforms

    Real-time response and ongoing feedback to improve the fraud risk models are made possible by an API-based platform that automates data interchange between banks and DoT’s digital intelligence platform, which has created FRI.

     According to the DoT, the platform has already been implemented in banks like HDFC Bank and ICICI Bank as well as fintech companies like PhonePe and Paytm.

    The DoT went on to say that as UPI is the most widely used payment mechanism in India, this action may prevent millions of people from being victims of cybercrime. The FRI makes it possible to take prompt, focused, and cooperative action against suspected frauds in the banking and telecommunications meantime, it has sectors.

    In the been claimed that the National Quantum Mission (NQM) is creating a task force to help banks implement the new technology for data analysis, financial modelling, and cybersecurity. The task force will assist banks in creating rules for the shift to quantum technologies, according to a media source.

    A draft of these standards is expected to be made public in the coming months following government approval. One of NQM’s initial milestones, a long-distance quantum key distribution (QKD) network, is anticipated to be completed by the end of July or the beginning of August, the article also stated.

    Cybercrime on the Rise in India

    Indians lost INR 1,935.51 Cr to digital arrest frauds in 2024, Bandi Sanjay Kumar, the minister of state (MoS) for home affairs, said in the Parliament earlier this year. He added that in the first nine months of FY25, cyber frauds cost INR 107.21 Cr.

    According to reports, the Centre has shut thousands of WhatsApp accounts used to spread online fraud, along with lakhs of SIM cards and IMEIs (International Mobile Equipment Identity).

  • SBI Labels Reliance Communications Loan as Fraud, Flags Anil Ambani to RBI

    Reliance Communications Ltd. (RCOM) announced in a regulatory filing on July 1 that the State Bank of India (SBI) had labelled the loan account of RCOM as “fraud” and was taking steps to submit the identity of the company’s former director, Anil Dhirubhai Ambani, to the Reserve Bank of India (RBI).

    According to SBI’s letter dated June 23, 2025, which was attached to the application, the bank’s Fraud Identification Committee has determined that the loan account of Reliance Communication Limited is fraudulent.

    Reliance Telecom Ltd. (RTL) and other group firms are among the associated entities mentioned in the letter, which was received on June 30. Other irregularities mentioned include possible fund diversion and loan term violations that resulted in the fraud classification.

    According to SBI, the decision was made after forensic audits and a review of several show-cause notices.

    Response from Reliance Communications

    According to Reliance Communications, since 2019, the business has been subject to the corporate insolvency resolution process (CIRP). Creditors have adopted a resolution plan, which is pending National Company Law Tribunal (NCLT) final approval.

    According to the SBI letter dated June 23, 2025, the credit facilities or loans mentioned therein relate to the time frame before the CIRP. According to the Insolvency and Bankruptcy Code (IBC), these must be settled either in liquidation or as part of a resolution plan.

    As per Reliance Communications, the corporation is shielded from the institution and continuation of any lawsuits or other actions taken against it during the CIRP.

    Following the NCLT’s acceptance of the resolution plan, the corporation will be immune from liability for any alleged crimes committed before the CIRP begins, according to the protection afforded by Section 32A of the IBC. The business also stated that in light of the latest development, legal counsel is being sought for the future.

    Journey of RCOM

    Dhirubhai Ambani formed the Reliance Group, which includes the Indian telecom business Reliance Communications Limited which was established in 2004.

    Following the Reliance Group split, RCOM, under the leadership of Anil Ambani, provided enterprise services, internet, and mobile and underwater cable connectivity. It suffered from high debt, increased competition, particularly from Reliance Jio, and a declining market share in the late 2010s.

     According to the Insolvency and Bankruptcy Code, the business went through the corporate insolvency resolution process in 2019. Anish Niranjan Nanavaty, a resolution specialist, has been running the company since the board was suspended.

    Many of RCom’s licences have expired or been surrendered, and the company is still in the process of going bankrupt. Its assets are being evaluated for sale or restructuring in order to pay off its creditors.

  • Home Loan Rates Drop After RBI Cut — Big Relief for Existing Borrowers!

    Four significant public sector banks have changed their lending rates in response to the Reserve Bank of India’s (RBI) recent move to lower the repo rate by 50 basis points, which reflects the central bank’s monetary easing stance.

    In the face of persistent difficulties, the action seeks to boost credit expansion and sustain economic activity. One of the first banks to lower its repo-linked lending rate (RLLR) by 50 basis points was Bank of Baroda, which did so on June 7, 2025, when it dropped to 8.15%.

    Following suit, Punjab National Bank (PNB) maintained its Marginal Cost of Funds based Lending Rate (MCLR) at 8.35% but reduced their RLLR by 50 basis points to 8.35% as of June 9. Likewise, on June 6, Bank of India reduced its repo-based lending rate by 50 basis points to 8.35%.

    UCO Bank reduced its MCLR by 10 basis points over a range of tenures, with the one-year MCLR now at 9%. It also reduced its RLLR by 50 basis points starting on June 9 and now stands at 8.30%.

    Beginning on June 7, HDFC Bank, a prominent private sector lender, likewise lowered its MCLR by 10 basis points throughout all tenures. The overnight and one-month MCLR rates decreased to 8.9% as a result of this modification.

    Bringing a Big Smile on the Face of Existing Borrowers

    Floating-rate loans, which are required by RBI regulations to be adjusted in accordance with the benchmark repo rate, are immediately impacted by the RBI’s repo rate drop. Lower interest rates will therefore be an immediate benefit for current borrowers with floating-rate loans.

    However, because banks are anticipated to adjust the spreads they charge over the repo rate in order to remain profitable, new borrowers might not fully benefit from the rate decrease. For instance, Bank of Baroda’s home loan rates for first-time borrowers now start at 8% following the change.

    Due to this selective adjustment, current borrowers stand to benefit more than new ones, as many of them previously obtained loans at reasonable rates as a result of market competition. A number of public sector banks, including Union Bank of India, Bank of India, Bank of Maharashtra, and Central Bank of India, were providing home loans with interest rates as low as 7.85% for loans up to INR 30 lakh prior to the RBI rate drop.

    Home loans were available at 7.90% from other lenders such as Canara Bank, Indian Bank, Indian Overseas Bank, and UCO Bank; Canara’s rate applied to loans above INR 75 lakh, while others applied to smaller credit amounts.

    FDs will Fetch Lesser Returns Now

    Lenders are also anticipated to lower returns on fixed deposits (FDs) in order to maintain profitability in the face of rate cuts and increasing liquidity in the banking system. In the short term, this change might make fixed deposits less alluring to savers.

     While trying to promote economic growth through lower borrowing costs, the RBI’s drop of the repo rate and the banks’ subsequent adjustments show continuous efforts to balance credit availability, profitability, and competitive pressures in the Indian banking sector.

  • SMBC to Seek RBI Nod for Full-Owned Subsidiary Before Yes Bank Stake Deal

    According to a media source, Sumitomo Mitsui Banking Corporation (SMBC) plans to apply for a licence from the Reserve Bank of India (RBI) to run a fully owned subsidiary in India. The action is a component of the Japanese conglomerate’s strategy to take over Yes Bank.

    Before State Bank of India (SBI) and other lenders sell their remaining approximately 14% interest to the Japanese conglomerate, SMBC requires the banking regulator’s approval to establish a wholly owned subsidiary in India, according to sources mentioned in the paper.

    As per the report, SMBC, which has four branches in India, intends to switch from the branch format to a full-fledged subsidiary model in order to make it easier to acquire the majority of Yes Bank.

    According to the article, the conglomerate has already received “verbal assurance” from the RBI that it will be permitted to keep a controlling interest in the private lender with its headquarters in Mumbai.

    RBI Granting Approvals to Foreign Players

    The RBI recently gave Emirates NBD Bank PJSC, the most probable leading candidate to purchase a share in IDBI Bank, in-principle approval to establish a wholly owned subsidiary in India.

     The RBI granted the Indian division of the Singapore-based DBS Group a permission to operate as a wholly owned subsidiary in 2019.

     On May 9, Yes Bank declared that, for around INR 13,480 crore, SMBC would purchase a 20% interest from its stakeholders, which included SBI and a number of other Indian banks that had taken part in its 2020 rehabilitation plan.

     It is also anticipated that the Japanese banking behemoth will contribute new funds to the private lender, amounting to an extra 6-7% of the company.

    SMBC and Yes Bank Deal

    A significant change in the ownership and control of the bank would occur if the money injection were to occur since SMBC could have to make an open offer to Yes Bank shareholders, increasing its overall interest to as much as 51%.

    Furthermore, on May 28, Yes Bank declared that its Board of Directors would convene on June 3, 2025, to examine a proposal for capital raising by the sale of debt securities, equity shares, or other suitable financial instruments.

    SMBC, which in 2021 purchased the non-bank finance company Fullerton India Credit and rebranded it as SMFG India Credit, may wish to combine Yes Bank with itself, pending RBI approval.

     As per the reports, having a wholly owned subsidiary, a majority position in a publicly traded private bank, and a 100% stake in a non-banking financing company (NBFC) would require overlapping a number of business operations.

  • PayPal Gets RBI Green Light to Operate as Cross-Border Payment Aggregator

    The Reserve Bank of India (RBI) has given PayPal Payments Pvt Ltd (PayPal), the Indian division of PayPal Holdings Inc., in-principle permission to function as a Payment AggregatorCrossBorderExports (PA-CB-E).

    According to a statement from the company, this is a significant turning point in PayPal’s activities in India and its ongoing assistance for Indian small businesses, allowing safe cross-border payments to about 200 markets.

    India’s Exports Reached USD 73.8 Billion

    The decision coincides with India’s exports hitting USD 73.8 billion in April 2025, highlighting the growing strength of international trade.

    The RBI’s in-principle PA-CB-E approval is a major milestone for PayPal, according to Nath Parameshwaran, Senior Director of Government Relations at PayPal India. It demonstrates the robustness of India’s regulatory framework and the advancements made in the direction of safe, simple cross-border transactions.

    He added further that the PayPal is still dedicated to providing Indian companies with reliable digital payment solutions as the country develops into a major exporting hub.

    PayPal is working to make international selling easier for Indian small businesses with a growing range of locally tailored products, including PayPal Checkout, PayPal Invoicing, and No-Code checkout solutions.

    PayPal Connect India’s Small Business with Global Commerce: Murshed

    Over the past 25 years, PayPal has demonstrated its ability to innovate at each significant turning point in the business world, according to Abid Murshed, Head of Sales at PayPal India.

    Murshed went on to say that the organisation has been in business in India for over ten years, providing reliable and secure payment options that allow freelancers and small enterprises to engage in international trade.

    PayPal supports its clients as they grow into new trade corridors and satisfy changing global customer expectations as trade dynamics change, bringing with them both new opportunities and challenges.

    PayPal said that the in-principle clearance enables it to continue providing cross-border payment services in a regulated environment, giving Indian merchants more security, consistency, and transparency in their international transactions.

    According to the statement, this creates new opportunities for localised product developments, better customer experiences, and easier access to PayPal’s worldwide payment network for Indian freelancers, small businesses, and major corporations.

    How PayPal Operates?

    Founded in March 2000, PayPal is an American online retailer that focuses on online money transfers. By allowing users to connect their PayPal accounts to their personal bank accounts and credit cards, the company speeds up payments and transfers compared to traditional methods of money transmission.

    PayPal’s main source of income is the transaction fees it charges customers and businesses on a per-transaction basis.

     A number of additional activities and transaction types, such as cross-border transactions, currency conversions, expedited money transfers to clients’ bank accounts or debit cards, and cryptocurrency transactions, all generate fees for the digital payments platform.