In a significant regulatory update, the Reserve Bank of India (RBI) has removed the requirement for non-bank entities to obtain prior approval for forming partnerships with authorized dealer banks for outward remittance services. This change, detailed in a revised framework, aims to enhance compliance, transparency, and consumer protection in the remittance process. The RBI mandates that banks must provide comprehensive information about transaction costs, including breakdowns of exchange rates and service charges, ensuring clarity for consumers. Additionally, the guidelines emphasize that customer funds should not be transferred to third-party accounts in India, thereby safeguarding them from insolvency risks. The revised framework holds authorized dealers accountable for compliance with the Foreign Exchange Management Act (FEMA) and mandates customer due diligence and grievance redressal, even when remittance services are provided via third-party platforms. These measures are designed to bolster the integrity and security of outward remittance transactions.