Is there a limit on cross-border transaction amounts?

Yes. The Reserve Bank of India Payment Aggregators Directions issued on September 15, 2025 cap cross-border import transactions at 25 lakh rupees per transaction. They also require the aggregator to share importer and exporter documentation with the Authorized Dealer bank. Compliance with those rules sits with PayU, not with each merchant.

The RBI directions

The Reserve Bank of India's Payment Aggregators Directions, issued on September 15, 2025, regulate aggregators that handle cross-border payments. They cap cross-border import transactions, Indian customers paying overseas merchants, at 25 lakh rupees per transaction, about €27,000 at 2026 rates. They also require the aggregator to collect and share importer and exporter documentation with the Authorized Dealer bank that handles the foreign exchange.

Who complies

• PayU, as the regulated aggregator, applies the cap and manages the documentation flow.
• The merchant provides the information PayU requests at onboarding, such as the nature of goods or services.
• The operator presents the method and reconciles the settlements; it does not interface with the RBI or the bank.

What it means for merchants

High-value sales to Indian customers may need to be split or handled through other channels, and merchants selling goods subject to import rules should expect documentation requests. For most e-commerce, digital services and travel merchants, the cap is far above typical ticket sizes. Operators should document the limit in the method's description for their merchants, and route transactions above it away from the method rather than letting them fail.