RBI To Simplify Cross-Border Payments To Support MSMEs, Exporters: EY Report

New Delhi, Jun 13 (KNN) The Reserve Bank of India (RBI) is set to simplify cross-border payment approvals and cut regulatory friction for businesses and exporters under its Payments Vision 2028, according to a report by EY. 

The report, titled ‘Payments Vision 2028: Preparing to Shape India's Payment Frontier’, identifies cross-border payments as a key strategic priority for the next phase of India's digital payments growth.

Shift in Focus

EY noted that the RBI is moving beyond its earlier emphasis on expanding digital payment adoption and is now aiming to improve the efficiency of cross-border transactions while strengthening India's position in global payments, ANI reported, citing the report.

The report describes cross-border payments as a strategic priority, with proposed simplification of authorisations potentially through a single-window approach, along with a comprehensive ecosystem review.

The RBI is expected to undertake a detailed review of the cross-border payments ecosystem to address regulatory and operational bottlenecks, particularly for businesses involved in international trade. 

EY said, "The approach for 2028 is highly structured and efficiency-driven. The RBI plans a comprehensive review of the cross-border ecosystem to remove regulatory and operational frictions, specifically to aid MSME exporters."

Single-Window Proposal

A central proposal under the framework is a single-window application process for cross-border payment authorisations, covering approvals under both the Payment and Settlement Systems (PSS) Act and the Foreign Exchange Management Act (FEMA). EY emphasised that to promote ease of doing business, the RBI is examining the introduction of such a single-window process under both laws.

This marks a shift from the earlier vision, which had centred on the global expansion of domestic payment systems. EY noted that the previous round's focus was on the initial global outreach of domestic systems such as UPI, RuPay and NEFT/RTGS. The new vision instead aims to simplify approvals and create a more efficient payments ecosystem for exporters, businesses and MSMEs.

Broader Priorities

Beyond cross-border payments, the Payments Vision 2028 framework also emphasises stronger user protection, fraud management, interoperability and data-driven oversight. 

EY noted that a key focus is the shift toward AI-led and data-driven oversight, including AI-queriable payments databases, to improve risk monitoring, fraud detection and policymaking.

(KNN Bureau)