- The Reserve Bank of India has given the green light to a firm called Cashfree Payments and informed it that it can now operate its platform in the country.
- The new move will see the firm provide Indian financial technology firms with methods to buy shares and exchange-traded funds.
- “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,” said a senior figure at Cashfree Payments.
The Reserve Bank of India (RBI) has given its approval to Cashfree Payments, a payment and API banking solutions provider, to launch a new cross-border payments platform in the country.
The move comes after the company conducted a successful pilot for the platform as part of RBI's regulation sandbox scheme.
The platform will allow Indian fintechs to provide an option for Indian investors to buy shares, exchange-traded fund units and other assets listed on foreign exchanges via Unified Payment Interface or net banking.
It is understood that a particular focus of the new scheme will be on investment.
It is thought that the Reserve Bank of India will treat the new option as a ‘liberalised remittance scheme’.
This is a scheme designed to allow people to send a certain amount of money abroad each financial year, provided that they are residents of the country.
“We are delighted to have successfully completed the test phase of RBI’s Second Cohort under the regulatory sandbox on Cross Border Payments,” said Reeju Datta, the co-founder of Cashfree 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,” he explained.
“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.”
It is understood that a particular focus of the new scheme will be on investment.
It is thought that at the present time, many Indian investors want to go for stocks from other major global economies such as the US.
However, it is thought that this scheme will look in particular at enabling investment within India.
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