RBI expands Rupee Drawing Arrangement transaction list
Current · Source: Reserve Bank of India · RBI/2013-14/438 · issued 09 Jan 2014 · ~2 min read
Quick answerRBI has added new permissible transactions under Rupee Drawing Arrangements (RDAs) via Exchange Houses, expanding the scope beyond personal remittances. AD Category-I banks must update their internal guidelines accordingly.
The rule, in the simplest words
Banks can now let people send money from abroad to pay for things like water, electricity, phone (not mobile top-ups), internet, and TV bills in India.
Banks can now let people send money from abroad to pay taxes in India.
Banks can now let people send money from abroad to pay monthly loan installments (EMIs) to banks and NBFCs (companies that give loans but are not banks).
Banks must never allow money sent from abroad through Exchange Houses to go to charities or donation groups.
Banks must update their own rules and teach their staff about these new allowed payments.
How it plays out — a real example
A forex & trade-finance officer in Indore notices that an NRI customer wants to send money through an Exchange House to pay his monthly car loan EMI to a local NBFC. The officer checks the updated RBI list, sees that EMI payments are now allowed, and processes the remittance smoothly, making sure to block any requests for charitable donations.
What changed
RBI revised Part (B) of Annex-I to A.P. (DIR Series) Circular No. 28 dated February 6, 2008, to include additional items under Permitted Transactions for Rupee Drawing Arrangements with Exchange Houses. The earlier list of 10 permissible transactions has been updated with three new items: payments to utility service providers, tax payments in India, and EMI payments to banks and NBFCs for loan repayment. All other existing instructions remain unchanged.
What it means for you
Banks can now process a broader range of inward remittances through Exchange Houses under RDAs, potentially increasing transaction volumes and fee income. However, the prohibition on routing donations to charitable institutions remains strict, requiring robust compliance checks. Banks must ensure their systems and staff are updated to handle the expanded list without violating FEMA provisions.
What you must do
Update internal circulars and operating instructions for Rupee Drawing Arrangements to reflect the revised permitted transaction list.
Train staff handling RDA transactions on the new permissible items and reinforce the ban on charitable donations.
Review and amend any customer-facing documentation or agreements related to Exchange House vostro accounts.
Ensure compliance with Section 10(4) and Section 11(1) of FEMA, 1999, as cited in the circular.
Who it affects
AD Category-I banks, Exchange Houses operating vostro accounts, NRI customers using RDA channels, Compliance and operations teams handling inward remittances
❓ Common questions
What is the key change in this circular?
RBI has expanded the list of permissible transactions under Rupee Drawing Arrangements with Exchange Houses, as detailed in the revised Annex-I. The exact new items are not specified in the source, but the scope of inward personal remittances has been broadened.
Are charitable donations still prohibited under RDAs?
Yes, the circular explicitly states that under no circumstances should donations or contributions to charitable institutions be routed through Exchange Houses. This restriction remains unchanged.
Do existing instructions from the 2008 circular still apply?
Yes, all other instructions from A.P. (DIR Series) Circular No. 28 dated February 6, 2008, as amended, remain unchanged. Only the permitted transactions list has been revised.
📜 Read the original circular — full text as issued by RBI
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/438 · issued 09 Jan 2014. The plain-English explanation above is BankPulse’s own independent summary.
Review and amend any customer-facing documentation or agreements related to Exchange House vostro accounts.
📜 Compliance
Update internal circulars and operating instructions for Rupee Drawing Arrangements to reflect the revised permitted transaction list.
Train staff handling RDA transactions on the new permissible items and reinforce the ban on charitable donations.
Ensure compliance with Section 10(4) and Section 11(1) of FEMA, 1999, as cited in the circular.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (AD Category-I banks, Exchange Houses operating vostro accounts, NRI customers using RDA channels, Compliance and operations teams handling inward remittances), your first concrete step on “RBI expands Rupee Drawing Arrangement transaction list” is: “Update internal circulars and operating instructions for Rupee Drawing Arrangements to reflect the revised permitted transaction list.” (RBI issued this 09 Jan 2014).
Circular: RBI/2013-14/438 -- RBI expands Rupee Drawing Arrangement transaction list
Issued: 09 Jan 2014
Action required: Update internal circulars and operating instructions for Rupee Drawing Arrangements to reflect the revised permitted transaction list.
Action required: Train staff handling RDA transactions on the new permissible items and reinforce the ban on charitable donations.
Action required: Review and amend any customer-facing documentation or agreements related to Exchange House vostro accounts.
Action required: Ensure compliance with Section 10(4) and Section 11(1) of FEMA, 1999, as cited in the circular.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8683&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.