Operating framework for facilitating Outward Remittance services by non-bank entities through Authorized Dealer (Category I) banks in India

Document text

RBI/2026-27/82 A.P. (DIR Series) Circular No.10 May 13, 2026 To All Authorised Dealers Madam / Sir, Operating framework for facilitating Outward Remittance services by non- bank entities through Authorized Dealer (Category I) banks in India 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. Yours Sincerely, (N Senthil Kumar) Chief General Manager Annex 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. Information to be displayed prominently to the customer remitting funds through website/ online platform/ software application/ mobile application/ any other interface of the third party – 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. Display of information on the website/ application/ mobile/ any other interface of AD – 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. Agreement with third party - 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 - The rights, obligations, and responsibilities of both parties in the transaction flow, including scope of services; Data handling and confidentiality; Data privacy; Dispute resolution mechanisms; Audit / Information sharing rights (to seek complete details of the transaction and process followed with the checks and balances). Compliance with applicable laws; Quoting of exchange rate to the remitter as quoted by AD; Scope of engagement; Permitted activities; Risk mitigation frameworks (including operational resilience and concentration risk management); Refund policy; 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 - Responsibility of the AD to uphold the remitter’s interests, including timely execution of transactions in a transparent manner. 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. 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.