RBI Simplifies Outward Remittance Framework for Fintech-Bank Partnerships
The relaxation specifically applies to cross-border outward remittances facilitated through Authorised Dealer (AD) Category-I banks.
Non-bank fintech firms can now enter into tie-up arrangements with banks under a revised operating framework, provided they comply with FEMA 1999 and KYC guidelines.
This move is expected to enhance the speed of international money transfers and reduce the regulatory hurdle for digital payment providers.
Significance for Aspirants: Understanding the deregulation of cross-border payments is crucial for banking exams as it reflects India's push towards 'Ease of Doing Business' in the fintech sector.
Key Facts / Static GK
AD Category-I Banks: Banks authorized by RBI to deal in all current and capital account transactions
RBI Governor: Shaktikanta Das
RBI Headquarters: Mumbai
Practice Quiz — 16 May 2026
Q1. Which category of banks is primarily involved in the revised operating framework for cross-border outward remittances as per the recent RBI notification?
Q2. According to the SEBI proposal on intraday borrowing for mutual funds, who is responsible for bearing the cost of such borrowing?
Q3. Consider the following statements regarding the Coal Gasification Promotion Scheme: 1. The total financial outlay is ₹37,500 crore. 2. Incentive support is provided for up to 50% of plant costs. 3. Syngas is the primary product of the gasification process. Which of the statements is/are correct?
Q4. Which bank holds the distinction of being the first Taiwanese financial institution to establish a branch in GIFT City, Gujarat?
Q5. What is the primary technical advantage of the 'Pathfinder' satellite compared to traditional imaging satellites?
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