A First for India: EbixCash Becomes the First Non-Bank Entity to Get an RBI Approval For Trade Remittances

For years, businesses in India have relied almost entirely on banks to process trade remittances because of strict regulatory requirements. That is now beginning to change. The Reserve Bank of India (RBI) has expanded the scope of Authorised Dealer Category-II (AD-II) entities, allowing qualified non-bank institutions to facilitate trade remittances of up to INR 25 lakh and family maintenance remittances under the revised FEMA framework. EbixCash World Money Limited is the first AD-II entity in the country to receive this approval on a perpetual basis.

The decision expands the role of regulated non-bank institutions in international trade payments. For MSMEs and SMEs, it creates more choice in how cross-border transactions are managed while encouraging greater competition and innovation across India's foreign exchange services ecosystem.

The Significance of RBI Approval for Trade Remittances

International trade payments involve much more than transferring money across borders. Every transaction must comply with FEMA regulations, KYC requirements, and foreign exchange rules to ensure the movement of funds remains secure and transparent. These safeguards protect businesses while preserving the integrity of India's financial system.

The revised RBI framework simplifies how eligible AD-II entities can participate in trade remittances. Instead of seeking transaction-specific approvals, authorised institutions are now responsible for ensuring compliance with FEMA, KYC, and transaction validation requirements. This shifts greater operational responsibility to regulated providers while giving businesses access to additional payment service options.

For businesses, especially MSMEs involved in global trade, this opens access to a broader ecosystem of regulated payment providers that can combine compliance with technology-driven payment services.

A Milestone That Redefines India's Trade Remittance Landscape

For decades, the complexity of foreign exchange regulations meant that international trade payments were handled almost exclusively by banks. The latest RBI decision signals that the ecosystem is evolving. Qualified non-bank institutions can now play a larger role in supporting businesses that require compliant and efficient trade remittance services. EbixCash World Money Limited becoming the first approved AD-II entity under this expanded framework reflects that broader regulatory shift.

Reflecting on this milestone, T.C. Guruprasad, Managing Director & CEO, EbixCash World Money Limited, says, “This approval reflects the culmination of nearly three decades of building trust and delivering secure financial services at scale. EbixCash World Money Limited is the first AD-II in India to receive this approval, reflecting RBI’s endorsement of everything the company has built, whether it's governance, compliance, or customer protection. As India’s most trusted and comprehensive payments and foreign exchange platforms, our vision aligns with RBI’s Payment Vision 2028 and the G20 Roadmap for enhancing cross-border payments. With a nationwide presence across 100+ branches in 70+ cities and a presence at 20+ international airports, we remain committed to enabling Indian businesses with a payment infrastructure that supports their global growth ambition.”

Adding to this, Himanshu Pramanick, Chief Compliance Officer, EbixCash World Money Limited, said, “The future of financial services will be defined by the ability to build trust at scale. Regulatory confidence is earned through consistent governance and disciplined execution. This approval reflects the growing maturity of India’s fintech ecosystem and the regulator’s confidence in institutions that can combine innovation with accountability. For us, this milestone is more of a responsibility than a finish line to help shape a more secure, efficient, and accessible cross-border payments ecosystem for businesses and individuals alike.”

Regulatory approvals of this nature are supported by more than compliance alone. They require operational maturity, technology infrastructure, and the ability to manage international payment workflows securely. Over the years, EbixCash World Money Limited has invested in building that foundation, enabling the company to support these expanded capabilities.

Creating a Cross-Border Payments Ecosystem

Delivering international trade payments at scale requires more than regulatory approval. It depends on an ecosystem that combines payment infrastructure and foreign exchange expertise. This is the foundation that EbixCash World Money Limited has developed over the years.

The company's existing infrastructure has already supported several industry-first initiatives, including enabling real-time cross-border payments to the United Kingdom through Faster Payments Service and across Europe through SEPA Instant. These capabilities significantly reduced international settlement times that traditionally took hours or even days.

The company operates on a ‘phygital model,’ which integrates a digital platform with one of the country’s largest physical distribution networks. The company processes over 75% of India’s cash-to-cash inward remittances and one of the largest outward remittances under the Liberalised Remittance Scheme. It is supported by more than 25,000 customer touchpoints across the country and relationships with more than 40 partner banks for whom it supplies foreign currency.

Impact on Enterprises After RBI's Trade Remittance Approval

Indian MSMEs and SMEs transact billions of dollars in cross-border trade every year; however, they remain among the most underpenetrated segments for fast, transparent international payment services. With the trade remittance license, businesses can now:

• Access more specialized remittance services through a regulated non-bank financial institution.
• Experience faster and more efficient payment processing that helps reduce delays in international transactions.
• Reduce operational complexity by working with providers combining technology, compliance, and payment expertise.
• Support business expansion into global markets with payment solutions designed for evolving requirements.
• Leverage digital-first payment infrastructure while maintaining regulatory compliance under the FEMA framework.

Conclusion

The cross-border payments landscape in India is entering a new phase, one where digital innovation, regulatory excellence, and financial inclusion must advance together. The RBI’s decision to expand trade remittance capabilities reflects a broader shift towards a more resilient, technology-driven financial ecosystem that can better support India's growing role in global trade.

As India's trade relationships continue to expand, businesses will increasingly look for payment partners that combine regulatory expertise with modern digital infrastructure. An organisation that can simplify international payments while maintaining the highest standards of compliance will play an important role in strengthening India's position in global commerce.

Read more: https://economictimes.indiatimes.com/industry/banking/finance/ebixcash-becomes-first-non-bank-entity-to-get-rbi-nod-for-trade-remittances/articleshow/132536070.cms?from=mdr