**Summary:**
This circular, A.P. DIR Series Circular No. 02, issued by the Reserve Bank of India (RBI) on April 12, 2023, expands the scope of online Form A2 submission to include Authorised Dealer (AD) Category-II entities. Previously, only AD Category-I banks offering internet banking facilities were permitted to allow online submission of Form A2, as outlined in A.P. DIR Series Circular No. 50 dated February 11, 2016.
Now, AD Category-II entities are also authorized to enable online Form A2 submissions, subject to the approval of their Board and within the existing statutory and regulatory framework. The terms and conditions specified in the February 11, 2016 circular remain applicable to all Authorised Dealers. Furthermore, all transactions must comply with the Foreign Exchange Management Act (FEMA) 1999 and the Master Direction on Know Your Customer (KYC) Direction, 2016, as updated.
This directive is issued under sections 10(4) and 11(1) of FEMA 1999 (42 of 1999) and does not supersede any other legal permissions or approvals required. Authorised Dealers are instructed to inform their constituents about the contents of this circular.
Contact: Vivek Srivastava, Chief General Manager.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking sector and managing the country's monetary policy.
Authorised Dealers: Entities authorized by the Reserve Bank of India to deal in foreign exchange.
Form A2: A form related to foreign exchange transactions, specifically for outward remittances.
A.P. DIR Series Circular No. 50: A circular issued by the Reserve Bank of India providing instructions and guidelines to Authorised Dealers.
February 11, 2016: Date of the A.P. DIR Series Circular No. 50 being referenced.
FEMA 1999: Foreign Exchange Management Act, 1999, a law in India that regulates foreign exchange transactions.
Master Direction Know Your Customer KYC Direction, 2016: A comprehensive set of guidelines issued by the Reserve Bank of India on Know Your Customer (KYC) norms for banks and financial institutions.
Vivek Srivastava: Chief General Manager at Reserve Bank of India, signatory of the circular.
भारतीय �रज़व� ब�क
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2023-24/16
A.P. (DIR Series) Circular No. 02 April 12, 2023
To
All Authorised Dealers in Foreign Exchange
Madam / Sir
Authorised Dealers Category-II - Online submission of Form A2
Attention of Authorised Dealer (AD) Category-I banks and AD Category-II entities is
invited to paragraph 4 of A.P. (DIR Series) Circular No. 50 dated February 11, 2016 on
‘Compilation of R-Returns: Reporting under FETERS’ in terms of which AD banks,
offering internet banking facilities to their customers were permitted to allow online
submission of Form A2.
2. It has now been decided to permit AD Category-II entities also to allow online
submission of Form A2. AD Category-II entities shall frame appropriate guidelines with
the approval of their Board within the ambit of extant statutory and regulatory
framwework.
3. The terms and conditions mentioned in aforesaid A.P. (Dir Series) circular No. 50
dated February 11, 2016 shall continue to apply, as hitherto, to all Authroised Dealers.
The relevant provisions of FEMA 1999, and ‘Master Direction – Know Your Customer
(KYC) Direction, 2016’ as updated from time to time, issued by the Department of
Regulation, RBI, have to be complied with by the ADs, for all transactions.
4. Authorised Dealers may bring the contents of this circular to the notice of their
constituents.
5. The directions contained in this circular have been issued under sections 10(4) and
11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without
prejudice to permissions/approvals, if any, required under any other law.
Yours faithfully
(Vivek Srivastava)
Chief General Manager