Cross-border payment: Four firms complete test in RBI's 2nd sandbox cohort

The four entities are: Cashfree Payments, Fairex Solutions, Nearby Technologies, and Open Financial Technologies

Four entities of the eight that commenced testing of their products in the second cohort under the Reserve Bank of India’s (RBI) regulatory sandbox structure themed “Cross Border Payments” have completed the “Test Phase”, the central bank informed on Tuesday.

The four entities that have completed the “Test Phase” are: Cashfree Payments India Pvt Ltd, Fairex Solutions Pvt Ltd, Nearby Technologies Pvt Ltd, and Open Financial Technologies Pvt Ltd.

Cashfree’s product extends a cross-border payment platform to facilitate the purchase of assets listed on foreign exchanges like publicly listed shares, exchange-traded funds i.e., ETFs and units of mutual funds, securities by Indian investors via local payment methods.

Similarly, Fairex’s product provides an aggregation platform of leading cross-border payment providers for outward remittance. Nearby Technologies product facilitates routing the inward cross-border remittance to the beneficiary’s Aadhaar number as a virtual bank account using existing Rupee Drawing Arrangement (RDA) mechanism.

And, Open’s product proposes a blockchain-based cross-border payment system, leveraging the current infrastructure and ensures frictionless and tamperproof monitoring capabilities.

These entities have now exited the second cohort regulatory sandbox on ‘Cross-Border Payments’. “The products found acceptable under this Cohort may be considered for adoption by regulated entities subject to compliance with applicable regulatory requirements”, RBI said.