EconomySaturday, 16 May 2026·The Hindu
RBI removes prior approval for non-bank outward remittance tie-ups under FEMA rules
On 13 May 2026, RBI eased outward remittance norms by removing prior approval for non-bank entities partnering with AD Category-I banks.
Key highlights
Direct fact
On 13 May 2026, the Reserve Bank of India removed the prior approval requirement for non-bank entities facilitating cross-border outward remittance services through banks.
Key specifics
- The earlier 2016 framework required non-bank entities to secure approvals before tie-ups with Authorised Dealer (AD) Category-I banks.
- The revised framework applies to non-trade current account transactions through websites, software platforms and mobile applications.
- AD banks are now solely responsible for ensuring compliance with FEMA and KYC norms.
- Platforms must disclose the quoted foreign exchange rate, validity period, total estimated transaction cost and maximum processing time.
- RBI was established on April 1, 1935, under the RBI Act, 1934, and nationalised on January 1, 1949.
Exam lens
Question type: Banking regulation and FEMA, 13 May 2026, RBI, AD Category-I banks, KYC, FEMA. TNPSC may ask the legal framework governing outward remittances and the disclosure requirements for digital platforms.