India’s fintech sector received a major regulatory boost as Skydo, a Bengaluru-based cross-border payments platform, received the final authorisation from the Reserve Bank of India (RBI) to operate as a Payment Aggregator – Cross Border (PA-CB) entity. This licence enables Skydo to expand regulated cross-border payment services for Indian exporters, particularly benefiting Micro, Small and Medium Enterprises (MSMEs), startups, and freelancers engaged in global trade.
The PA-CB licence stands for Payment Aggregator – Cross Border, a regulatory category established by the RBI to govern fintech companies that facilitate cross-border money transactions. Under this framework, only authorised entities can collect international payments on behalf of Indian businesses and process them through compliant systems. This regulatory oversight is critical because cross-border payments involve foreign exchange, compliance checks under FEMA (Foreign Exchange Management Act), and documentation requirements.
With this approval, Skydo joins a limited group of fintech companies that have final regulatory clearance, strengthening trust among overseas clients and businesses engaging with Indian exporters.
Skydo’s platform currently serves over 30,000 Indian MSMEs, startups, and freelancers, enabling them to receive payments in more than 32 foreign currencies. The company uses a flat-fee pricing model and imposes no markup on live mid-market forex rates, making international payments more transparent and cost-effective. Faster settlement cycles and easy compliance documentation—provided through integrations with partner banks—significantly ease the process for small businesses.
Skydo’s services help exporters avoid lengthy traditional banking processes and compliance delays, which is particularly valuable for startups and small businesses that depend on regular cash flows.
With the RBI’s final approval, Skydo plans to strengthen and diversify its cross-border payment services across additional global markets. It already offers solutions in complex trade corridors like Africa, and provides tools such as invoicing, payment reminders, analytics dashboards, and integration with ERP and accounting systems—helping users to manage funds and trade operations efficiently.
Additionally, Skydo recently raised $10 million in Series A funding led by Susquehanna Asia Venture Capital, with participation from Elevation Capital. The company aims to achieve $5 billion in annualised payment volumes by 2027, reflecting the rapid growth potential of fintech solutions for international commerce.
The RBI’s approval of Skydo’s PA-CB licence is highly relevant for students preparing for competitive government exams like SSC, Banking, Railways, Teaching, Defence, and Civil Services (UPSC/PCS) because it reflects regulatory developments in the financial sector, which is a common topic in current affairs, especially under Banking & Economy. Understanding such news helps aspirants answer questions related to RBI regulations, fintech growth, foreign exchange, and MSME support.
This news shows how the government and regulatory bodies are creating supportive regulatory frameworks for fintech companies, fostering innovation and easing international trade. Such updates are significant for sections like General Studies Paper-3 (Economy) in UPSC and banking exam syllabi where payment systems and financial inclusion are key topics.
Cross-border payment facilitation drives financial inclusion by enabling smaller exporters and freelancers to access global markets without complex banking barriers. For exams with economics, banking, or fintech trends questions, this development is a clear example of how regulation and technology intersect to improve economic participation.
India’s cross-border payment infrastructure has evolved significantly over recent years, driven by the Reserve Bank of India (RBI) under the Payment and Settlement Systems Act, 2007, and additional guidelines under the Foreign Exchange Management Act (FEMA). Historically, cross-border payments were dominated by traditional banking systems involving SWIFT transfers and correspondent banking, which were slow and costly.
The RBI introduced the Payment Aggregator – Cross Border (PA-CB) licensing system to allow fintech companies to legally and compliantly operate platforms that can collect and process international payments. Earlier, companies like Cashfree, PayPal India, and others received in-principle approval followed by final licences, indicating a broader shift towards regulated fintech ecosystems.
This regulatory change aligns with India’s broader aim to boost digital payments, support MSMEs, and facilitate ease of doing business in the global marketplace by enabling efficient, transparent, and secure payment systems.
1. What is a PA‑CB licence approved by RBI?
The PA‑CB licence stands for Payment Aggregator – Cross Border, which authorizes fintech companies to collect and process international payments for Indian exporters, freelancers, and MSMEs under RBI regulations.
2. Why is Skydo receiving the PA‑CB licence significant?
Skydo is among the first fintech companies to get final RBI approval, enhancing trust for cross-border transactions, enabling efficient payments in 32+ foreign currencies, and supporting MSMEs and startups in India.
3. How does Skydo’s platform benefit Indian exporters and freelancers?
Skydo offers fast international settlements, flat-fee pricing, no forex markup, and integration with accounting/ERP systems, reducing the complexity of traditional banking and compliance delays.
4. Under which laws does the PA‑CB licence operate?
The PA‑CB licence operates under the Payment and Settlement Systems Act, 2007 and Foreign Exchange Management Act (FEMA), 1999, ensuring compliance with cross-border payment regulations.
5. How is this news relevant for government exam aspirants?
It is important for exams like SSC, Banking, UPSC, PCS, Railways, and Defence, particularly under sections covering Banking & Economy, Financial Regulations, MSME support, and FinTech developments.
6. What future plans does Skydo have after RBI approval?
Skydo plans to expand cross-border payment services globally, offer advanced analytics dashboards, invoicing tools, and achieve $5 billion in annualized payment volumes by 2027.
7. What is the historical significance of PA‑CB licences in India?
The licence reflects India’s move from traditional banking dominance to regulated fintech ecosystems, supporting MSMEs and startups with secure, transparent international payments.
National IED Data Management System launched by Amit Shah enhances India’s counter-terrorism capabilities using AI…
IREDA MoU rating 2025: Indian Renewable Energy Development Agency secures excellent rating for fifth consecutive…
New Delhi World Book Fair 2026 offers free entry for all visitors, highlighting Indian military…
PANKHUDI portal launch 2026 by Union Minister Annpurna Devi strengthens women and child welfare through…
Akasa Air joins IATA, becoming India’s fifth airline member. Learn about IATA membership, IOSA audit,…
Mission Sudarshan Chakra enhances India’s drone defence capabilities through CUAS Grid, AI-based systems, and indigenous…