Xflow Receives RBI’s In-Principle Approval to Operate as Cross-Border Payment Aggregator.
Banking & Finance
In July 2025, Bengaluru-based fintech firm Xflow received the In-Principle Authorization (IPA) from the Reserve Bank of India (RBI) to function as a Payment Aggregator for Cross-Border (PA-CB) transactions. This approval marks a significant milestone for Xflow in expanding its regulated role within India’s digital payments and forex management ecosystem.
- The RBI’s in-principle clearance allows Xflow to facilitate both export and import-related international payment flows for Indian businesses. As a PA-CB, Xflow can now offer end-to-end digital cross-border payment solutions, improving regulatory compliance, transparency, and efficiency in foreign trade transactions.
- With this new authorization, Xflow plans to scale operations from its current 10,000 business clients to over 30,000 businesses by the end of 2025.
- This strategic expansion will enable broader market access for Indian exporters and importers, particularly MSMEs (Micro, Small & Medium Enterprises), who face friction in cross-border fund flows.
Main Point :- (i) Xflow also announced the launch of FX AI Analyst, India’s first AI-powered tool for forex insights, designed to assist businesses in managing foreign exchange risks. The tool uses predictive analytics to optimize currency conversion decisions and helps in mitigating volatility-driven losses in international trade.
(ii) The authorization places Xflow among a select group of RBI-recognized PA-CBs. So far, only six entities have received such clearance: Adyen India, Amazon Pay India, Cashfree Payments, IndiaIdeas.com (BillDesk), Pay10 Services, and Worldline ePayments India, highlighting the exclusivity and importance of this regulatory milestone.
(iii) The PA-CB framework was introduced by the RBI to ensure secure, efficient, and legally compliant handling of online cross-border payments under India’s FEMA (Foreign Exchange Management Act) guidelines. Xflow’s entry into this category signifies its alignment with India’s financial digitization and fintech innovation objectives.
About RBI
Governor : Sanjay Malhotra
Headquarter : Mumbai
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