Fintech startup PayNearby to launch cross-border remittance service

CIOTechOutlook Team | Wednesday, 27 July 2022, 03:44 IST

  • No Image

By October, the fintech startup PayNearby will launch an inbound cross-border remittance service that will let recipients make partial withdrawals rather than all of them at once.

"The Reserve Bank of India (RBI) has granted us the approval under the second cohort for cross-border remittance. India gets about $80 billion as remittance every year, which either comes in cash or in bank account," told Anand Kumar Bajaj, Founder, MD and CEO, PayNearby .

People from rural and urban areas can withdraw from various forex exchange providers at district headquarters or talukas. However, there are only 50,000-60,000 such forex providers.

"What we showed to the Reserve Bank is that instead of a one-time cash-in-cash-out mechanism, one can use the Rupee Drawing Arrangement (RDA), which can directly go to the bank account of the receiver, and the money can be remitted to the Aadhaar number (linked account)," Bajaj said.

PayNearby has created a dedicated IFSC code, which will act as the router to deposit the money to the Aadhaar-linked bank account of the receiver.

He said it took the company about six to seven months in the testing phase, and the refinement of the product is still in the process. PayNearby will launch this service in about a quarter or by October, Bajaj added.

🍪 Do you like cookies?

We use cookies to ensure you get the best experience on our website. Read more...