Form A2 mandatory for all cross-border remittances
Current · Source: Reserve Bank of India · RBI/2024-25/47 · issued 03 Jul 2024 · ~1 min read
Quick answerRBI has withdrawn the USD 25,000 threshold exemption for Form A2. Now, authorised dealers must obtain Form A2 (physical or digital) for every cross-border remittance, regardless of amount. This streamlines compliance and ends the earlier simplified letter-based process.
The rule, in the simplest words
Every cross‑border remittance now needs a Form A2 (a form that records the details of the money sent), no matter how small the amount.
The earlier rule that let people send up to USD 25,000 with just a simple letter is no longer valid.
The Form A2 can be filled out on paper or electronically (digital) at the bank counter.
Banks must update their systems and train staff so that the Form A2 is collected for every transaction.
Customers should be told about the new requirement so they bring the form when they send money abroad.
How it plays out — a real example
A remittance officer named Riya in a Chennai bank branch greets a customer who wants to send ₹50,000 to her brother in the UAE. She explains that the bank now needs a Form A2 for every outward remittance, so she helps the customer fill out the digital version on a tablet. Riya smiles and assures the customer that the new form will keep the transaction safe and compliant.
What changed
Earlier, remittances up to USD 25,000 could be processed with just a simple letter and no Form A2. Now, RBI has withdrawn those circulars and made Form A2 mandatory for all cross-border remittances, irrespective of value. The earlier exemption for small-value transactions is gone.
What it means for you
Banks must now collect Form A2 for every outward remittance, adding a documentation step even for small amounts. This increases operational burden but ensures uniform compliance and better audit trails. Lenders should update their systems and train staff to handle the new requirement seamlessly.
What you must do
Update internal remittance processing systems to require Form A2 for all transactions, regardless of amount.
Train branch and forex staff on the new mandatory Form A2 requirement and withdrawal of earlier circulars.
Communicate the change to customers to avoid confusion at the counter.
Ensure digital Form A2 options are available for customer convenience.
Who it affects
All authorised dealers in foreign exchange, Bank branches handling cross-border remittances, Customers making outward remittances
❓ Common questions
What was the earlier limit for Form A2 exemption?
Earlier, remittances up to USD 25,000 could be processed with a simple letter without Form A2. That exemption is now withdrawn.
Does this apply to digital remittances?
Yes, Form A2 can be obtained in physical or digital form for all cross-border remittances, irrespective of value.
What happens if we don't collect Form A2?
Non-compliance may lead to regulatory action under FEMA. Banks must ensure Form A2 is obtained for every remittance.
📜 Read the original circular — full text as issued by RBI
RBI/2024-25/47
A.P. (DIR Series) Circular No. 13
July 03, 2024
To,
All Authorised Dealers in Foreign Exchange
Madam / Dear Sir,
Release of foreign exchange for Miscellaneous Remittances
In terms of the direction issued under the A.P.(DIR Series) Circular No. 16 dated September 12, 2002 , A.P.(DIR Series) Circular No. 55 dated December 23, 2003 and A. P. (DIR Series) Circular No.118 dated May 07, 2012 , Authorised Dealers are permitted to release foreign exchange for any current account transaction, on the basis of a simple letter containing basic information and subject to an upper limit of USD 25,000 or its equivalent. It was also advised that Authorised Dealers need not obtain any other documents, including Form A2, and that the payment was to be made by the applicant through Demand Draft or a cheque drawn on his / her bank account.
2. With a view on streamlining the regulatory compliances and operational procedures, it is now decided that Authorised Dealers shall obtain Form A2 in physical or digital form for all cross-border remittances irrespective of the value of transaction. Consequently, the above-mentioned circulars stand withdrawn with immediate effect. Authorised Dealers shall continue to take necessary steps, in terms of Section 10(5) of Foreign Exchange Management Act, 1999, to assure themselves that such transactions do not involve any contravention of the provisions of FEMA.
3. Authorised Dealers may bring the contents of this circular to the notice of their constituents.
4. 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/2024-25/47 · issued 03 Jul 2024. The plain-English explanation above is BankPulse’s own independent summary.
Train branch and forex staff on the new mandatory Form A2 requirement and withdrawal of earlier circulars.
Communicate the change to customers to avoid confusion at the counter.
💻 IT / Systems
Update internal remittance processing systems to require Form A2 for all transactions, regardless of amount.
📜 Compliance
Ensure digital Form A2 options are available for customer convenience.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are an IT/Systems lead at a bank this circular applies to (All authorised dealers in foreign exchange, Bank branches handling cross-border remittances, Customers making outward remittances), your first concrete step on “Form A2 mandatory for all cross-border remittances” is: “Update internal remittance processing systems to require Form A2 for all transactions, regardless of amount.” (RBI issued this 03 Jul 2024).
Circular: RBI/2024-25/47 -- Form A2 mandatory for all cross-border remittances
Issued: 03 Jul 2024
Action required: Update internal remittance processing systems to require Form A2 for all transactions, regardless of amount.
Action required: Train branch and forex staff on the new mandatory Form A2 requirement and withdrawal of earlier circulars.
Action required: Communicate the change to customers to avoid confusion at the counter.
Action required: Ensure digital Form A2 options are available for customer convenience.
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=12696&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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