What changed
RBI updated the purpose codes appended to Form A-2, following a revision of R-Return purpose codes in February 2012. The revised list is now annexed to this circular for use by applicants remitting funds abroad.
What it means for you
Banks must ensure that all remittance applications use the updated purpose codes to maintain consistency with R-Return reporting. This reduces data mismatches and streamlines foreign exchange transaction reporting for ADs.
What you must do
- Replace old Form A-2 purpose codes with the revised list annexed to this circular.
- Train staff handling remittance applications on the updated codes.
- Update internal systems and forms to reflect the new purpose codes.
- Ensure that all remittance applications use the revised codes as per the circular.
Who it affects
Authorised Dealers in foreign exchange, Bank branches handling outward remittances, Compliance and forex operations teams
Why was the A-2 form revised?
The revision aligns purpose codes in Form A-2 with updated R-Return codes issued in February 2012, ensuring consistency in reporting foreign exchange transactions.
When must banks start using the new form?
Banks should use the revised Form A-2 with the annexed purpose codes as per the circular dated July 12, 2012.
What happens if we use old codes?
Using outdated codes may cause mismatches in R-Return submissions and non-compliance with FEMA directions under Section 10(4) and 11(1).