When Indian exporters receive payments from overseas buyers, the transaction passes through a Payment Aggregator for Cross Border (PA CB). RBI requires PA CBs to conduct additional checks beyond standard KYC because these entities handle foreign currency inflows that must comply with FEMA, anti-money laundering standards, and export reporting rules.
For exporters, these additional checks are part of the onboarding and ongoing verification process. Understanding them helps avoid delays, especially during the first few settlements.
Why PA CBs Must Follow Enhanced Due Diligence
Cross border payments are more complex than domestic ones. Funds originate outside India, pass through foreign partners and must be settled in INR against a valid export activity.
RBI therefore expects PA CBs to:
• verify the legitimacy of the exporter
• confirm that the inflow matches a permitted export category
• ensure inward remittances are routed properly
• reduce the risk of fraud and misclassified exports
• meet reporting obligations to Indian banks
These expectations lead to a structured set of additional checks for exporters.
Core Additional Due Diligence Steps Exporters Must Complete
PA CBs follow a deeper verification process before allowing exporters to receive foreign currency payments. The steps below are common across regulated platforms.
1. Detailed Verification of Export Activity
Exporters must demonstrate what they sell, who they sell to and how the value is created. PA CBs often request:
• website or portfolio clearly showing the export service or product
• service descriptions that match invoice categories
• sample work or delivery confirmation for service exports
• product catalog or shipping history for goods exporters
The aim is to ensure the export is genuine and permitted under FEMA.
2. Mapping Business Activity to Purpose Codes
Each foreign inflow must be classified under an RBI purpose code. PA CBs conduct additional checks to confirm that:
• the exporter’s activity matches the purpose code
• invoices include descriptions consistent with that code
• there is no mismatch between the export category and the business registration
Incorrect codes delay settlement and expose the platform to regulatory risk.
3. Enhanced KYC for Owners and Controllers
Standard KYC includes PAN, address proof and identity documents. PA CB additional due diligence includes:
• verification of directors or partners
• UBO checks for ownership above threshold levels
• background checks for compliance history
• validation of business registration through government sources
The exporter must prove lawful ownership and operation.
4. Invoice Level Scrutiny for First Time Exporters
Because new exporters have no track record, PA CBs validate:
• the invoice details and currency
• contract or statement of work
• client details, including country
• proof of service delivery
A mismatch between invoice description and business profile may lead to additional queries.
5. Transaction Pattern Review
PA CBs monitor transaction size, frequency and country of origin. Additional checks occur when:
• the first transaction is unusually large
• payments originate from high risk regions
• there is a sudden spike in value or volume
• transactions do not match business scale
These steps prevent fraud and misuse of export channels.
6. Bank Verification and Settlement Eligibility
Before INR settlement, PA CBs must confirm that:
• the bank account belongs to the same entity
• the PAN linked to the bank matches KYC records
• the exporter is eligible to receive foreign earnings
Any inconsistency causes settlement delays until documentation is corrected.
7. Documentation for Inward Remittance Reporting
PA CBs ensure exporters receive correct documents for regulatory and tax purposes, which may include:
• purpose code classification
• inward remittance advice
• foreign currency conversion details
• export documentation for GST or accounting
These documents must align with RBI and banking requirements to avoid future reconciliation issues.
Why These Checks Matter for Exporters
The additional due diligence is not meant to slow down exporters. It protects them from compliance violations, ensures smoother long term settlements and creates a clean record for audits, GST filings and bank reporting.
Exporters who understand these requirements usually onboard faster and experience fewer settlement interruptions because they provide the information that PA CBs are legally obligated to verify.
How India Focused Platforms Handle These Steps Smoothly
Platforms built specifically for India’s inward remittance framework follow RBI’s PA CB guidelines naturally. Their onboarding flow collects the required documents upfront, assigns purpose codes automatically and structures settlement exactly as Indian banks expect.
Because these systems are designed for India from the beginning, exporters face fewer repeated queries and can receive foreign payments with predictable timelines.
Conclusion
PA CB specific due diligence exists to ensure that export related payments into India follow FEMA and RBI guidelines. Exporters must complete more documentation than domestic merchants, but these checks protect both the business and the financial ecosystem. Platforms that are structured around India’s regulatory framework manage these steps efficiently, giving exporters faster onboarding and cleaner settlement cycles.
Why BRISKPE Matches PA CB Due Diligence Requirements
BRISKPE operates fully within India’s inward remittance rules. Its onboarding mirrors the documentation and verification steps that PA CBs are expected to follow. Exporters provide simple KYC, business details and invoices, after which foreign payments flow through virtual account details, convert at live interbank rates and settle in INR with the correct documentation.
This alignment reduces verification friction and makes BRISKPE a stable option for exporters who want compliance clarity and consistent settlement cycles.
