RBI Mandates ADs to Obtain Form A2 for All Cross-Border Remittances
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- Last Updated on 5 July, 2024
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Circular No. RBI/2024-25/47 A.P. (DIR Series) Circular No. 13; Dated: 03.07.2024
Under the erstwhile norms[ A.P.(DIR Series) Circular No. 16 dated September 12, 2002 read with A.P.(DIR Series) Circular No. 55 dated December 23, 2003 and A. P. (DIR Series) Circular No.118 dated May 07, 2012], Authorized Dealers could release foreign exchange for current account transactions up to USD 25,000 based on a simple letter with basic information. They did not need to obtain any other documents, including Form A2, and the payment was to be made by the applicant via Demand Draft or a cheque from their bank account.
Now, the RBI has mandated that the authorised dealers (ADs) shall obtain Form A2 in physical or digital form for all cross-border remittances, irrespective of the value of the transaction. Consequently, the above-mentioned norms stand withdrawn with immediate effect.
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