Non Trade Remittance
Series through Platforms Linked You AD Banks
·
The
Reserve Bank of India has issued a new framework allowing Authorized Dealer
(AD) banks to facilitate outward remittance services through third-party
non-bank online platforms without prior RBI approval.
·
RBI
has deleted Paragraph 10 of the existing Master Direction on Miscellaneous
Transactions, which earlier required specific RBI approval for such tie-up
arrangements.
·
AD
Category-I banks can now independently partner with:
o Websites,
o Online platforms,
o Mobile applications,
o Software applications,
o Other digital interfaces
for outward remittance services related to non-trade current account
transactions.
·
AD
banks will remain fully responsible for:
o FEMA compliance,
o KYC requirements,
o Customer protection,
o Transaction monitoring.
Third-party
platforms must prominently display:
·
Name
and authorization status of the AD bank,
·
Applicable
foreign exchange (FX) rate,
·
Timestamp
and validity period of FX quote,
·
Complete
transaction cost breakup,
·
Estimated
amount receivable by beneficiary,
·
Maximum
remittance completion timeline,
·
Customer
grievance contact details.
·
Customers
must receive invoices clearly showing:
o Exchange rate details,
o Mark-ups and service charges,
o Amount remitted and credited,
o Maximum settlement timeline,
o Name of the AD bank quoting the FX rate.
AD
banks must:
·
Publish
names of all third-party partners on their websites,
·
Display
customer grievance contacts,
·
Maintain
transparent customer data storage policies.
Agreements
between AD banks and third-party entities must cover:
·
Roles
and responsibilities,
·
Data
privacy and confidentiality,
·
Dispute
resolution,
·
Audit
and information-sharing rights,
·
FEMA
compliance,
·
Cybersecurity
and operational risk management,
·
Refund
policies,
·
Internal
compliance controls.
·
AD
banks must ensure:
o Explicit customer consent for data
collection,
o Compliance with the Digital Personal Data
Protection Act,
o Adherence to RBI cybersecurity standards.
·
AD
banks must ensure:
o End-to-end settlement to beneficiary
accounts within promised timelines,
o Transaction tracking in case of delays,
o Protection of customer funds from
insolvency risks.
·
Customer
funds must never pass through accounts of the third-party entity in India.
·
Remittances
must originate from and terminate into bank accounts only.
·
Foreign
third-party entities facilitating remittances must be licensed by regulators in
their respective jurisdictions where applicable.
·
AD
banks must apply enhanced due diligence for jurisdictions identified under FATF
risk statements.
·
Similar
transparency and customer protection rules will apply to doorstep delivery of
forex cards and foreign currency notes facilitated through third-party
platforms.
[A.P. (DIR Series) Circular
No.10 dated May 13, 2026]
Attention of Authorised Persons is invited to Master Direction - Miscellaneous (Master Direction No. 19/2015-16 dated January 1,
2016),
as amended from time to time.
2.
Paragraph 10 of the Master Direction provided a
framework under which non-bank entities could obtain specific approval from the Reserve Bank for tie-up arrangements to facilitate outward remittance services through Authorised Dealer Category-I banks in India subject
to certain conditions.
3.
On a review, it has been decided to dispense with the process of granting of the approvals by RBI for such tie-ups and instead Authorised Dealers
are advised to comply
with instructions furnished in Annex while facilitating cross-border outward remittance of funds for non-trade current account transactions using third party entity in online mode (website/ online platform/ software application/ mobile application/ any other interface). Therefore, the para 10 of the Master Direction - Miscellaneous dated January 1, 2016 (as amended from time to time) stands deleted
with immediate effect.
4.
The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without
prejudice to permissions / approvals, if any, required under
any other law.
A. Instructions to be complied
with by the Authorised Dealers (ADs) while facilitating cross-border outward remittance of funds for non-trade current account transactions using third party entity in online mode (website/
online platform/ software application/ mobile application/ any other interface) are as given below:-
1.
Compliance - The AD, shall remain solely responsible for ensuring compliance of the transactions with FEMA and undertaking Know Your Customer (KYC) in accordance with the A.P. DIR Series Circular No. 16 dated November 28, 2025, as amended from time to time issued by the Reserve Bank of India (RBI).
2.1
The name of the AD involved in the remittance, its roles and responsibilities in relation to the remittance, its status of authorization (AD Category-I/ II) along with the name of the
AD whose foreign exchange (FX)
rate will be used for the conversion.
2.2
The FX rate quoted by the AD along with timestamp and period of validity of the rate for the transaction.
2.3
The total estimated cost of the transaction along with break-up of the exchange rate (interbank
rate and mark-up separately), service
charges, other charges, if
any, with description
without any ambiguity.
2.4
The exact amount in foreign exchange that will be credited along with the maximum time
taken for crediting
the beneficiary’s account.
2.5
The contact details of the officer for customer grievance redressal (telephone number and
email address), along
with timelines for dispute resolution.
3.
Invoice: The AD, which provides the exchange rate and the foreign exchange, shall ensure that an invoice is generated and
issued by the third-party to the customer for
every transaction indicating –
(a) Break-up of final amount including exchange rate (interbank rate and mark-up separately), service charge and other charges levied by the third-party, if any, with descriptions without any
ambiguity.
(b) The amount remitted by remitter and amount that will be credited in the beneficiary account.
(c) The maximum time period in hours required for the credit of the amount in the beneficiary account.
(d) The name of the AD quoting the FX rate.
4.1 In the context of the arrangements so entered
into with third party, the AD shall update the homepage of its website, inter-alia, with the names of all third-party entities with whom they have arrangements for online remittance along with its role and responsibility in each of the said arrangement with the contact details (telephone number
and email address) of the
officer for customer grievance redressal.
4.2 AD shall ensure that its policy regarding storage of customer data including the type of data that will be stored, the purpose of the data and the period of storage, is prominently displayed on the
website.
5.1 The agreement entered into by the AD with the third party shall in no manner dilute or absolve the AD of its obligations under any statutory or regulatory provision, and the AD shall be fully responsible and liable for all acts and omissions of the third party.
5.2 The agreement of AD with the third party shall explicitly
specify the following -
a.
The rights, obligations, and responsibilities of both parties in the transaction flow,
including scope of services;
b.
Data handling and
confidentiality;
c.
Data privacy;
d.
Dispute resolution
mechanisms;
e.
Audit /
Information sharing rights (to seek complete
details of the transaction and
process followed with the
checks and balances).
f.
Compliance
with applicable
laws;
g.
Quoting of exchange rate to the remitter as quoted by AD;
h.
Scope of
engagement;
i.
Permitted activities;
j.
Risk mitigation frameworks (including operational resilience and concentration risk
management);
k.
Refund policy;
l.
Internal controls for compliance
with FEMA, 1999.
5.3 The third
party shall have a comprehensive Privacy Policy compliant with applicable laws, associated regulation and RBI guidelines, which shall be made available
publicly and accessible
easily.
6.
Grievance redressal - The AD shall have a formal grievance redressal framework in
compliance with RBI guidelines.
7.
Internal policy - The AD shall have an internal policy for entering into such arrangements with third-party entities with focus on the customer service, customer protection
and transparency including the following
-
a.
Responsibility of the AD to uphold the remitter’s interests, including timely execution
of transactions in a transparent manner.
b.
Data
privacy safeguards: AD shall ensure
that any collection of data (including personal information) by the third party is need based and with prior and explicit consent of the remitter and it cannot be shared except for cases where such sharing
is required as per statutory or regulatory requirement including compliance with the provisions of the Digital Personal Data Protection (DPDP) Act
and the Rules framed thereunder, wherever applicable.
c.
AD shall ensure that they as well as the third party comply with various technology standards /
requirements on cybersecurity stipulated by RBI and other
relevant agencies, or as may be
specified from time to time.
8.
Ensure end-to-end settlement -
The AD shall ensure that the remittance reaches the intended beneficiary’s bank account within the timeline specified to the remitter. In case of any delay beyond the specified
time the remitter
should be able to track the status of the transaction.
9.
Handling fund -
AD shall ensure the safety and security of the remitter’s funds and suitably ringfence them from any kind of insolvency risks. In addition, the AD must ensure that remitter’s funds do not, at any stage, flow into the account of the third party
in India.
10.
Banking Channel -
The remittances shall be permitted only for fund transfers originated from the remitter’s bank account and ending at the beneficiary’s bank account.
11.
Non-Resident third Party - If the third-party entity is a person resident outside India, then the entity shall be duly licensed (in case
this activity requires a license
in that jurisdiction) by the regulator of destination jurisdictions to facilitate remittances to
beneficiaries in such jurisdictions.
Note: FATF Statements circulated by RBI from time to time, and publicly available information, for identifying countries, which do not or insufficiently apply the FATF Recommendations, shall be considered while making outward remittances. ADs shall apply enhanced due diligence measures, which are effective and proportionate to the risks, to business
relationships and transactions with natural and legal persons (including financial institutions)
from such countries.
B. In case the AD has arrangement with a third-party entity for the door step delivery of forex card or foreign currency notes to the buyer who has placed
order on a third party entity’s
website/ application/ mobile/ any other interface, then the AD shall ensure that relevant
paragraphs specified above, related to transparency, customer grievance and customer protection are complied with by the AD and the concerned third-party entity.