RBI lets AD-1 banks partner with nonbanks for overseas payments
The Reserve Bank of India (RBI) just made sending money overseas a lot simpler.
Now, AD-1 banks don't need special RBI approval to partner with payment apps or other nonbanks for things like paying tuition, medical bills, travel, or investing abroad.
Instead, authorized dealer category-one (AD-1) banks are in charge of making sure everything's clear and aboveboard, especially when it comes to fees and exchange rates.
Banks must show fees and rates
AD-1 banks must now show you the total estimated cost, breaking down all fees and exchange rates, right on their payment platforms.
Your money will go straight from your account to whoever you're sending it to overseas (no middlemen in India).
Plus, banks have to keep your funds safe from insolvency risks and share details about their partners and data policies online.
With Indians spending over $15 billion on foreign travel between April 2025 and February 2026, these changes aim to make sending money out of the country smoother and safer for everyone.