The Chief Executives of all
Exchange Companies

Dear Sirs/Madam,

Home Remittances Agency Arrangements of Exchange Companies with Foreign Entities

1. Attention of Exchange Companies is invited towards the instructions contained in FE Circular No. 01 dated January 01, 2009 and Para 9(ii)(a), Chapter 3 of Exchange Companies Manual, which sets out the framework/regulatory requirements for entering into agency arrangements with foreign entities for carrying out home remittance business.
2. In order to increase the flow of home remittances, Exchanges Companies are encouraged to explore new agency arrangements with foreign entities on non-exclusive basis, while complying with the due diligence and other requirements of framework given in FE Circular No. 01 of 2009, and approach this department along with draft agreements for seeking regulatory input on such agreements.