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Authorised Dealer banks can now partner with digital remittance platforms without prior RBI approval, subject to compliance safeguards.
RBI no longer requires prior approval for AD banks partnering with digital remittance platforms.
KEY POINTS
AD banks can now process outward remittances via third-party digital channels without RBI pre-clearance.
RBI prohibits routing remitter funds through third-party accounts within India under the new framework.
Banks remain responsible for compliance, including KYC, consumer protection, and cybersecurity safeguards.
New rules mandate clear disclosures on exchange rates, fees, timelines, and crediting to beneficiaries.
Authorised Dealer banks can now partner with digital remittance platforms without prior RBI approval, subject to compliance safeguards
In addition, the RBI barred the routing of remitter funds through third-party accounts in India
Aathira Varier
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The Reserve Bank of India (RBI) on Wednesday removed the requirement for prior approval for tie-up arrangements between Authorised Dealer (AD) Category-I banks and non-bank entities offering outward remittance services through digital platforms.
Under the revised framework, AD banks can facilitate cross-border outward remittances for non-trade current account transactions through third-party websites, mobile applications, and software interfaces without seeking prior clearance from the RBI.
The central bank, however, said AD banks will remain fully responsible for compliance with Foreign Exchange Management Act (FEMA) provisions, know-your-customer (KYC) norms, customer protection standards, grievance redressal, cybersecurity safeguards, and protection of remitter funds.
The framework also requires banks and partner entities to provide clear disclosures on exchange rates, charges, timelines for transfers, and beneficiary credits.
In addition, the RBI barred the routing of remitter funds through third-party accounts in India.
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First Published: May 13 2026 | 9:56 PM IST