RBI liberalises foreign remittance norms by removing value thresholds for online submission of Form A2, allowing seamless reporting across all transaction sizes. AD Category-I banks and AD Category-II entities must frame internal guidelines accordingly.
RBI Removes Remittance Limits for Online Form A2 Submission
In a move to ease cross-border transaction reporting, the Reserve Bank of India (RBI) removed the previous monetary limits for online submission of Form A2, effective October 1, 2026. A.P. (DIR Series) Circular No. 23 empowers Authorised Dealers (ADs) Category-I banks and AD Category-II entities to process all remittances through digital channels regardless of amount.
The notification amends Paragraph 3 of earlier Circular No. 12 dated July 3, 2024, mandating institutions to frame internal guidelines to manage risk and compliance in high-value transfers. This simplification reduces paperwork and supports RBI’s goal of promoting digital financial infrastructure.
For legal practitioners, this indicates reduced procedural friction in outward remittance advisory work. Banks must ensure robust KYC and anti-money laundering checks remain in place, particularly for large or frequent transactions. The change benefits trade, investments, and individual remitters alike.