The Reserve Bank removes value thresholds for electronic remittances requiring prior Form A2 submission, streamlining compliance for authorised dealers and customers.
RBI Removes Remittance Limits for Online Form A2
In a significant procedural relaxation, the RBI has removed the earlier monetary threshold requiring mandatory online submission of Form A2 for foreign remittances. A.P. (DIR Series) Circular No. 23, issued October 1, 2026, amends prior guidelines and removes paragraph 3 of Circular No. 12 dated July 3, 2024.
Now, Authorised Dealers (Category I banks and Category II entities) may determine internal thresholds for electronic Form A2 submission based on risk-based internal controls. While Form A2 remains central to KYC and anti-money laundering compliance, the removal of a uniform cap enhances operational flexibility.
The change reflects RBI's shift toward principle-based regulation. Institutions must update their internal policies to incorporate risk-sensitive criteria for documentation, ensuring alignment with the Foreign Exchange Management (Mode of Payments and Methods of Collection) Regulations.
Citations
- A.P. (DIR Series) Circular No. 23, 2026
- FEMA (Mode of Payments) Regulations