RBI removes fixed remittance limits on Form A2, requiring authorized dealers to establish board-approved internal policies for processing physical and online remittance requests.
No cap on Form A2 remittances; banks must set board guidelines
The Reserve Bank of India has eliminated fixed thresholds for remittances under Form A2, replacing them with a framework requiring authorised dealer banks to formulate board-approved internal guidelines. These guidelines must govern both online and physical remittance applications under the Liberalised Remittance Scheme (LRS) and other current/capital account transactions.
The new policy enhances institutional discretion while reinforcing accountability. Banks must assess purpose, documentation, and end-use compliance under FEMA, particularly for high-value or repetitive transactions. The RBI emphasized risk-based scrutiny over quantitative caps.
Corporate and individual clients may face greater documentation demands as banks tighten internal controls. Legal advisors should review client compliance protocols, especially for offshore investments and education-related transfers.
