On Wednesday, the Reserve Bank of India (RBI) announced the removal of prior approval requirements for tie-up arrangements between Authorised Dealer (AD) Category-I banks and non-bank entities that offer outward remittance services via digital platforms. This regulatory change allows AD banks to facilitate cross-border remittances for non-trade current account transactions through third-party websites, mobile applications, and software interfaces without needing prior clearance from the RBI. However, the central bank emphasized that AD banks must ensure compliance with the Foreign Exchange Management Act (FEMA), know-your-customer (KYC) regulations, customer protection standards, grievance redressal, and cybersecurity measures. Additionally, banks and their partners are required to provide transparent disclosures regarding exchange rates, fees, transfer timelines, and beneficiary credits. The RBI also prohibited the routing of remitter funds through third-party accounts in India to enhance security and compliance.