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RBI removes limits on online Form A2 remittances

Current · Source: Reserve Bank of India · RBI/2024-25/46 · issued 03 Jul 2024 · ~1 min read
Quick answerRBI has removed all amount caps on remittances via online Form A2 for AD Category-I and II entities, effective immediately. This simplifies cross-border payments and aligns with ease-of-doing-business goals, but banks must still comply with KYC and FEMA rules.
The rule, in the simplest words
How it plays out — a real example

Ravi, a KYC & compliance officer in Indore, used to tell customers they could only send up to a certain amount online. Now, after the RBI rule change, he can process a ₹50 lakh remittance for a customer's daughter's education abroad through the online Form A2 without any cap, as long as he verifies the customer's identity and reports the transaction in FETERS.

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

Who it affects

AD Category-I banks, AD Category-II entities, Customers making outward remittances

❓ Common questions

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.

📜 Read the original circular — full text as issued by RBI
RBI/2024-25/46 A.P. (DIR Series) Circular No. 12 July 03, 2024 To All Authorised Dealers in Foreign Exchange Madam / Dear Sir Online submission of Form A2: Removal of limits on amount of remittance Attention of Authorised Dealer (AD) Category-I banks and AD Category-II entities is invited to paragraph 4 of A.P. (DIR Series) Circular No. 50 dated February 11, 2016 (Compilation of R-Returns: Reporting under FETERS) and A.P. (DIR Series) Circular No. 02 dated April 12, 2023 (Authorised Dealers Category-II – Online Submission of Form A2), wherein AD Category-I banks and AD Category-II entities were permitted to allow submission of Form A2 through online mode by their customers, subject to certain conditions and limits. 2. On a review, and to improve ease of doing business, it is now decided to permit all Authorised Dealers (AD Category-I banks and AD Category-II entities) to facilitate remittances on the basis of online / physical submission of Form A2 and other related documents, if and as may be necessary, subject to the conditions laid down in Section 10(5) of FEMA 1999. Accordingly, there shall not be any limit on the amount being remitted on the basis of ‘online’ Form A2. 3. Authorised Dealers shall frame appropriate guidelines for the purpose, with the approval of their Board within the ambit of extant statutory and regulatory framework. The Authorised Dealers shall continue to comply with the relevant provisions of FEMA 1999 and ‘ Master Direction – Know Your Customer (KYC) Direction, 2016 ’ as updated from time to time, issued by Department of Regulation, RBI, for all transactions. It may be further noted that reporting of transactions in FETERS shall continue, as hitherto, by the Authorised Dealer banks. 4. Authorised Dealers may bring the contents of this circular to the notice of their constituents. 5. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law. Yours faithfully (N. Senthil Kumar) General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2024-25/46 · issued 03 Jul 2024. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
🏦 Branch Manager
  • Communicate the removal of limits to customers and branch staff to streamline operations.
📜 Compliance
  • 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.
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, AD Category-II entities, Customers making outward remittances), your first concrete step on “RBI removes limits on online Form A2 remittances” is: “Update internal guidelines for online Form A2 processing with board approval, removing any previous amount limits.” (RBI issued this 03 Jul 2024).

  1. Circular: RBI/2024-25/46 -- RBI removes limits on online Form A2 remittances
  2. Issued: 03 Jul 2024
  3. Action required: Update internal guidelines for online Form A2 processing with board approval, removing any previous amount limits.
  4. Action required: Ensure robust KYC compliance under Master Direction – KYC Direction, 2016 for all online remittance transactions.
  5. Action required: Continue reporting all remittance transactions in FETERS as per existing requirements.
  6. Action required: Communicate the removal of limits to customers and branch staff to streamline operations.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. 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.

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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=12697&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.
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