RBI has withdrawn the prior approval requirement for tie-ups between non-bank entities and Authorised Dealer Category-I banks for facilitating outward remittances, and has deleted paragraph 10 of the Master Direction with immediate effect. ADs may now use third-party online interfaces for non-trade current account outward remittances only if they comply with detailed transparency, customer protection, KYC, grievance redressal, data privacy, cybersecurity, settlement, and fund-safeguarding requirements. The AD remains solely responsible for FEMA compliance and for all acts and omissions of the third party, and remitter funds must move directly from the remitter's bank account to the beneficiary's bank account.
RBI has withdrawn the prior approval requirement for tie-ups between non-bank entities and Authorised Dealer Category-I banks for facilitating outward remittances, and has deleted paragraph 10 of the Master Direction with immediate effect. ADs may now use third-party online interfaces for non-trade current account outward remittances only if they comply with detailed transparency, customer protection, KYC, grievance redressal, data privacy, cybersecurity, settlement, and fund-safeguarding requirements. The AD remains solely responsible for FEMA compliance and for all acts and omissions of the third party, and remitter funds must move directly from the remitter's bank account to the beneficiary's bank account.
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