What changed
Previously, online submission of Form A2 for remittances was subject to specific limits and conditions under earlier circulars. Now, RBI has removed all such limits, allowing any amount to be remitted via online Form A2, subject to existing statutory and regulatory requirements.
What it means for you
Banks can now process larger remittances online without cap restrictions, reducing paperwork and turnaround time for customers. However, they must strengthen their KYC and AML frameworks to handle higher-value transactions, and continue reporting in FETERS.
What you must do
- Update internal guidelines for online Form A2 processing with board approval, removing any previous amount limits.
- Ensure robust KYC compliance under Master Direction – KYC Direction, 2016 for all online remittance transactions.
- Continue reporting all remittance transactions in FETERS as per existing requirements.
- Communicate the removal of limits to customers and branch staff to streamline operations.
Who it affects
AD Category-I banks, AD Category-II entities, Customers making outward remittances
Does this circular apply to both physical and online Form A2 submissions?
Yes, the circular permits remittances based on either online or physical submission of Form A2, with no limit on the amount for online submissions.
Are there any new reporting requirements under this circular?
No new reporting requirements are introduced. Existing FETERS reporting by AD banks continues as before.
Do we need board approval to implement these changes?
Yes, ADs must frame appropriate guidelines with board approval, within the existing statutory and regulatory framework.