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Regulatory document · Reserve Bank of India

Operating framework for facilitating Outward Remittance services by non-bank entities through Authorized Dealer (Category I) banks in India

UR

The four dates on this rule

This rulebook is short, and the page is short with it. This document is 1925 words long. It states 15 separate rules. So the page carries 15 points, not the thirty a long rulebook carries. Nothing has been left out to make it shorter.

At a glanceDealers must have an internal policy for such third party tie ups, focused on service, protection and transparency. Paragraph 10 of the Miscellaneous Master Direction is removed from now on. The dealer must display the exchange rate, time stamp and how long that rate stays valid for the deal.

Official RBI page

What it says

Do it

1. Show FX rate and validity

The dealer must display the exchange rate, time stamp and how long that rate stays valid for the deal.

2. Disclose full transaction cost

The dealer must show total estimated cost with clear split of rate, service fee and any other charge.

3. Give grievance contact details

The dealer must display grievance officer contact details and time lines for resolving disputes.

4. Invoice for every transaction

The dealer must ensure the third party issues an invoice to the customer for each transaction.

5. Invoice break up of amounts

Each invoice must clearly break the final amount into rate, mark up, service charge and any other third party charge.

6. Invoice must show remitted amounts

Each invoice must show what the remitter paid and what the beneficiary will receive.

7. Invoice must show max time

Each invoice must state the maximum hours needed to credit the beneficiary account.

8. Invoice must name the dealer

Each invoice must name the dealer that quoted the exchange rate.

9. Publish data storage policy

Dealers must clearly display their customer data storage policy, purpose and storage period on their website.

10. Third party privacy policy

The third party must have a clear privacy policy, legal compliant, public and easy to access.

11. Grievance redressal framework

Dealers must keep a formal grievance redress system that meets Reserve Bank of India rules.

12. Internal policy for tie ups

Dealers must have an internal policy for such third party tie ups, focused on service, protection and transparency.

Background

1. Master Direction para deleted

Paragraph 10 of the Miscellaneous Master Direction is removed from now on.

2. Bank to bank only

Remittances are allowed only when money starts from remitter bank account and ends in beneficiary bank account.

Where to go next