The Reserve Bank of India issued a circular detailing the operating framework for facilitating outward remittance services by non-bank entities through Authorized Dealer (Category I) banks. This update emphasizes the amendments to previous directions under the Foreign Exchange Management Act.
Outward Remittance Services Framework
On May 13, 2026, the Reserve Bank of India (RBI) published A.P. (DIR Series) Circular No.10, outlining the framework for facilitating outward remittance services by non-bank entities via Authorized Dealer (Category I) banks. This framework is intended to enhance the operational landscape for non-bank entities engaging in outward remittance.
The circular calls attention to existing provisions under Master Direction No. 19/2015-16, reiterating the necessity for compliance with the updated regulations. It aims to streamline processes and improve the efficiency of remittance services, which are crucial for the growing demands of cross-border transactions.
This development signals an important shift in RBI's regulatory approach, aiming to encourage non-bank participation in the remittance sector while ensuring adherence to compliance requirements. Practitioners should review the implications of this framework on their operational strategies within the remittance landscape, ensuring they align with the RBI's updated guidelines.
Citations
- RBI Circular No.10 (2026) A.P. (DIR Series)
