American online payments gateway service provider PayPal has registered its operations with the Financial Intelligence Unit of India, about six years after a protracted legal battle ensued between the two entities.
Under the new framework, the licensed PA/PG - CB entities will be fully responsible for being compliant with PMLA, including reporting suspicious transactions. The move is an extension of RBI s strategy to bring clarity and regulatory ownership in merchant payments. Also, UPI is now allowed to be used.
The central bank sad that non-banks that provide cross-border payment aggregator (PA) services will have to apply for an authorisation from the regulator by April 30, 2024.