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

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....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....

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.... 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....

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.... 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 o....

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....rom 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 acco....