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Xflow Receives RBI’s In-Principle Approval to Operate as Cross-Border Payment Aggregator.

Banking & Finance | Dated: 28 Jul 2025

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.

🎯 Key Highlights:

  • - 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.

💡 Other Important Facts:

  • (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.

📚 Test Your Knowledge:

Recently, which fintech company received the RBI’s In-Principle Approval to operate as a Cross-Border Payment Aggregator?

Correct Answer: Xflow

🚀 Quick Recap:

About RBI

  • Governor : Sanjay Malhotra
  • Headquarter : Mumbai