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

The non-bank entities may obtain an approval from the Reserve Bank for facilitating outward remittance services through Authorized Dealer (Category I) banks in India to effect outward remittances.

The governing conditions for this arrangement are as under:

1. The Authorized Dealer (Category I) bank through which the service is being offered shall be responsible for ensuring that each outward remittance transaction is in compliance with the provisions of governing regulations in India.
2. The said Authorized Dealer (Category I) bank shall be responsible for ensuring compliance to KYC/ AML standards/ CFT issued by the Reserve Bank.
3. The remittances facilitated under this model shall comprise small value transactions, not exceeding USD 5000 per transaction. Remittances by resident individuals will be subject to the limit prescribed under the Liberalised Remittance Scheme (LRS).
4. Only current account transactions, in the nature of personal remittances, shall be permitted under this model. The transactions permitted are as follows:
1. Private Visits,
2. Remittance by tour operators / travel agents to overseas agents / principals / hotels,
3. Business Travel,
4. Fee for participation in global conferences and specialized training,
5. Remittance for participation in international events / competitions (towards training, sponsorship and prize money).
6. Film shooting,
7. Medical Treatment abroad,
8. Disbursement of crew wages,
9. Overseas Education,
10. Remittance under educational tie up arrangements with universities abroad,
11. Remittance towards fees for examinations held in India and abroad and additional score sheets for GRE, TOEFL etc.,
12. Employment and processing, assessment fees for overseas job applications,
13. Emigration and Emigration Consultancy Fees,
14. Skills/ credential assessment fees for intending migrants,
15. Visa fees,
16. Processing fees for registration of documents as required by the Portuguese/ other Governments,
17. Registration/ Subscription/ Membership fees to International Organizations.
5. Trade transactions are permitted subject to limits and other conditions prescribed for imports under Online Payment Gateway Service Providers (OPGSP)
6. The remittances shall be permitted only for fund transfers from one bank account to another bank account.
7. Remittances shall be only made to beneficiaries in jurisdictions which are FATF compliant.
8. The remitting service provider shall be a duly licensed entity by regulator of destination jurisdictions to facilitate remittances to beneficiaries in such jurisdictions.
9. The remitter’s moneys should be kept distinct from service provider’s operating account and such moneys should be duly protected from insolvency risks of the facilitating service provider.
10. The Authorized Dealer (Category I) bank may submit to the Reserve Bank every year a certificate stating that the conditions prescribed in the approval are adhered to.