Tuesday, September 27, 2022
Google search engine
HomeFinTechCashfree Payments Receives RBI Approval To launch Product Enabling Purchase Of Listed...

Cashfree Payments Receives RBI Approval To launch Product Enabling Purchase Of Listed Shares On Foreign Exchanges

Cashfree Payments (website), a leading Indian payments and API banking solutions provider, announced that its cross-border payments product received the green light from the Reserve Bank of India (RBI). The approval came after the company successfully tested the solution during the RBI’s second cohort regulatory sandbox for cross-border payments.

The product will enable Indian fintech companies to offer Indian investors the purchase of equities, exchange-traded fund (ETF) units and other assets listed on foreign exchanges through UPI/Net Banking. The cross-border investments fall within the RBI’s Liberalized Remittance Scheme (LRS) scope. As per RBI, the product can be accepted by regulated entities, provided it meets the applicable regulatory requirements.

One of the most cumbersome steps for Indians looking to invest in foreign equities is funding their accounts abroad. This usually involves filling out A2 forms, paying high fixed fees, and sometimes even visiting a bank branch. Cashfree Payments’ solution makes payments via UPI, online banking, and LRS compliance integrated, seamless and completely digital. Investors can invest in small amounts starting from INR 1000. The solution also offers savings on foreign currency fees and faster processing for accessing funds.

Under this model, investors can simply log in to an app integrated with Cashfree Payments, enter their basic KYC information, and begin transferring funds in Indian currency (INR). The company then converts the transferred amount into a foreign currency, such as USD, and transfers it to the foreign broker, allowing investors to buy international stocks successfully.

Source

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -
Google search engine

Most Popular

Recent Comments