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RBI CIRCULAR

          Non-residents in Government Securities –               b. ‘Processing and Settlement of Export related re-
                                                                     ceipts facilitated by Online Payment Gateways’ -
          Inclusion of Sovereign Green Bonds                         A.P. (DIR Series) Circular No. 17 dated November

                                          November 08, 2023          16, 2010,
                                                                 c.  ‘Processing and Settlement of Export related re-
          1. A reference is invited to the Press Release on ‘Issuance
             Calendar for Marketable Dated Securities for October    ceipts facilitated by Online Payment Gateways –
                                                                     Enhancement of the value of transaction’ - A.P.
             2023 - March 2024’ dated September 26, 2023, issued
                                                                     (DIR Series) Circular No. 109 dated June 11, 2013,
             by the Reserve Bank, notifying, inter alia, the issuance
             calendar for Sovereign Green Bonds for the fiscal year  d. ‘Processing and settlement of import and export
             2023-24. Attention is also invited to the Fully Accessible  related payments facilitated by Online Payment
             Route (FAR) introduced by the Reserve Bank, vide A.P.   Gateway Service Providers’ – A.P. (DIR Series) Cir-
             (DIR Series) Circular No. 25 dated March 30, 2020,      cular No.16 dated September 24, 2015, and
             wherein certain specified categories of Central Govern-  e. ‘Processing and settlement of small value Export
             ment securities were opened fully for non-resident in-
                                                                     and Import related payments facilitated by Online
             vestors without any restrictions, apart from being avail-  Export-Import  Facilitators  (OEIF)  (erstwhile
             able to domestic investors as well.
                                                                     OPGSP)’ – draft circular issued on April 7, 2022 for
          2. The Government Securities that are eligible for invest-  seeking feedback from banks and other stakehold-
             ment under the FAR (‘specified securities’) were noti-  ers.
             fied by the Bank, vide circular no. FMRD.FMSD.No.25/  2. All Payment Aggregators (PAs) which facilitate process-
             14.01.006/2019-20 dated March 30, 2020, circular no.
                                                                 ing of domestic transactions in online mode are cov-
             FMRD.FMID.No.04/14.01.006/2022-23 dated July 07,
             2022 and circular no. FMRD.FMID.No. 07/14.01.006/   ered within the scope of the circulars referred to above
             2022-23 dated January 23, 2023.                     at paragraph 1(a). Further, instructions for cross-bor-
                                                                 der payment  transactions are provided for in the
          3. It has now been decided to also designate all Sover-  circulars mentioned above at paragraphs 1(c) to 1(e)
             eign Green Bonds issued by the Government in the fis-  as well as through specific approval given by the RBI
             cal year 2023-24 as ‘specified securities’ under the FAR.  to banks for their collection agent arrangements.
          4. The Directions contained in this circular have been is-
                                                              3. Keeping in view the developments that have taken
             sued under Section 45W of Chapter IIID of the Reserve  place in the area of cross-border payments, it has been
             Bank of India Act, 1934 and are without prejudice to  decided to bring all entities facilitating cross-border
             permissions/ approvals, if any, required under any other
                                                                 payment transactions for import and export of goods
             law.
                                                                 and services under direct regulation of the RBI. Such
          5. These Directions shall be applicable with immediate  entities shall be treated as Payment Aggregator-Cross
             effect.                                             Border (PA-CB); details thereof are provided in Annex.

                                                              4. Entities, including Authorised Dealer (AD) banks, PAs
          Regulation of Payment Aggregator – Cross               and PAs-CB, involved in processing / settlement of cross-
          Border (PA - Cross Border)                             border payment transactions for import and export of
                                                                 goods and services, shall comply with these instructions
                                            October 31, 2023
                                                                 (as updated from time to time).
          1. A reference is invited to the Reserve Bank of India (RBI)  5. This directive is issued under Section 10 (2) read with
             circulars on –                                      Section 18 of the Payment and Settlement Systems Act,
             a. ‘Guidelines on Regulation of Payment Aggregators  2007 (Act 51 of 2007), and, Section 10 (4) and Section
                 and  Payment  Gateways’  –  (a)  DPSS.CO.PD.    11  (1)  of the  Foreign  Exchange  Management  Act
                 No.1810/02.14.008/2019-20 dated March 17, 2020  (FEMA), 1999 (42 of 1999), and is without prejudice to
                 and (b) CO.DPSS. POLC.No.S33/02-14-008/2020-    permissions / approvals, if any, required under any other
                 2021 dated March 31, 2021,                      law.

            54 | 2023 | DECEMBER                                                           | BANKING FINANCE
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