The Reserve Bank of India has relaxed the approval process for online Form A2 forex remittances. A new RBI circular dated October 1, 2026, now allows authorised dealers to frame internal guidelines with the approval of their Board or a delegated Board Committee or Management Committee. This change offers greater flexibility to banks handling outward foreign exchange remittances.
Key Details of the Form A2 Forex Remittance Update
Earlier, the RBI’s A.P. (DIR Series) Circular No. 12, issued on July 3, 2024, required authorised dealers to obtain full Board approval for internal guidelines on Form A2 submissions. However, the new circular — A.P. (DIR Series) Circular No. 23 — broadens this requirement. Banks and AD Category II entities can now delegate this approval to a Board Committee or Management Committee. As a result, the process becomes faster and more practical for large institutions.
Authorised Dealers Category I banks and AD Category II entities must update their internal policies accordingly. Additionally, they must communicate this update to their customers and constituents. All other instructions from the July 2024 circular remain unchanged. Therefore, banks should review only the approval authority aspect of their existing guidelines.
What This Means for Customers and Banks
For customers sending money abroad, this update means smoother and potentially quicker processing of outward remittances. Banks, meanwhile, gain operational flexibility by empowering committees rather than waiting for full Board meetings. This is especially useful for institutions with large transaction volumes. For example, a bank’s risk management committee could now approve the relevant internal framework directly.
The RBI issued these directions under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999. These directions are without prejudice to any other permissions or approvals required under applicable law. Authorised dealers should therefore ensure full compliance with both the new circular and existing FEMA regulations.
Why This RBI Circular Matters
This update reflects the RBI’s broader push to streamline forex operations in India. By allowing delegation of authority, the central bank reduces bureaucratic delays in online Form A2 forex remittance processing. Additionally, it aligns governance practices with real-world operational structures of large banks. Overall, this is a practical and welcome regulatory refinement for India’s foreign exchange ecosystem.
Source: RBI Notifications
