The RBI vide its Notification RBI/2024-25/46 A.P. (DIR Series) Circular No. 12 dated 3rd July 2024, has now permitted all ADs to facilitate remittances based on the online/physical submission of Form A2 with no limit on the amount that can be remitted through the online Form A2. Earlier, RBI permitted AD Category-I banks & AD Category-II entities to allow their customers to submit Form A2 online, subject to certain restrictions. However, the online facility was available for transactions with an upper limit of USD 25,000 for individuals & USD 1,00,000 for corporates

Under the Reserve Bank of India (RBI), A2 payment refers to a category of remittance used for making international payments. Specifically, it falls under the RBI’s Foreign Exchange Management Act (FEMA), which governs foreign exchange transactions in India.

A2 Payments Are Typically Used for Purposes Such As:

Travel: Payments for travel-related expenses like airline tickets, hotel bookings, and other travel-related services.

Education: Tuition fees and other expenses for students studying abroad.

Medical: Treatment Expenses for medical treatment outside India.

Business: Payments related to business travel, conference participation, and other business-related expenses.

Gifts and Donations: Remittances for gifting purposes or charitable donations.

Maintenance of Close Relatives: Remittances sent for the maintenance of close relatives living abroad.

These payments are subject to certain limits and regulatory requirements set by the RBI. For instance, there are annual limits on the amount an individual can remit under the Liberalised Remittance Scheme (LRS), which currently stands at USD 250,000 per financial year.