RNFI Money Private Limited, a wholly owned subsidiary of RNFI Services Limited, received approval from the Reserve Bank of India on 21 September 2026 for perpetual validity of its Authorised Dealer Category-II licence with an expanded scope to handle cross border trade remittances. The approval also permits the company to open Nostro accounts and appoint Forex Correspondents. It allows RNFI Money to take regulated foreign exchange and trade payment services beyond bank branches to its network of more than 2.8 lakh retail agents (as of September 2026).
What Did the RBI Approve for RNFI Money?
The Reserve Bank of India granted perpetual validity to the Authorised Dealer Category-II (AD-II) licence held by RNFI Money Private Limited. The earlier licence had a fixed validity period running up to 2027 and needed periodic renewal. The new approval removes that renewal cycle, subject to continued compliance with RBI rules under the Foreign Exchange Management Act, 1999 (FEMA).
The Reserve Bank of India also expanded the scope of the RNFI Money licence in three specific ways. First, RNFI Money can now facilitate trade remittances, which are cross border payments linked to import and export of goods and services. Second, RNFI Money can open Nostro accounts, which are foreign currency accounts held by an Indian entity with a bank abroad to settle international payments. Third, RNFI Money can appoint Forex Correspondents, who act as agents to provide foreign exchange services on behalf of the licence holder under strict central monitoring.
The company announced the approval on 21 September 2026. The management said perpetual validity shows the Reserve Bank of India’s confidence in the company’s governance and compliance record. The approval gives RNFI Money long term certainty to invest in systems, staff training and technology for cross border business.
What Is RNFI Services Ltd and RNFI Money?
RNFI Services Limited is a New Delhi based financial infrastructure company that provides last mile banking and payment services through local retail shops. The company was incorporated in 2015 and is listed on the NSE Emerge platform since 29 July 2024. It works through its Relipay platform and a network of field agents called Sahayaks, who offer services such as Aadhaar enabled payments, domestic money transfer, bill payments, travel booking and banking correspondent services.
RNFI Money Private Limited was incorporated on 20 June 2019 as a wholly owned subsidiary of RNFI Services Limited. It started as a Full-Fledged Money Changer (FFMC), which is a company authorised by the Reserve Bank of India only to buy foreign currency from visitors and to sell foreign exchange for travel abroad. In July 2026, the Reserve Bank of India upgraded the FFMC licence of RNFI Money to Authorised Dealer Category-II status, which allows a wider set of foreign exchange services. The September 2026 approval has now made that AD-II licence perpetual and added trade related permissions.
The wider RNFI group also includes businesses for banking technology, insurance broking and prepaid instruments. RNFI Services recently received in principle authorisation from the Reserve Bank of India to operate as a Payment Aggregator Physical (PA-P), which handles face to face card and payment collection for merchants. The group reports more than 2.8 lakh active retail agents, coverage across more than 17,600 PIN codes, and crores of monthly transactions through its phygital network that combines physical shops with digital technology.
What Is Cross Border Remittance?
Cross border remittance is a payment sent from a person or business in one country to a person or business in another country. It includes family money transfers, export and import payments, education fees and service charges settled in foreign currency under FEMA rules.
The term cross border payments is wider than remittance. It covers every payment that crosses national borders, while cross border remittance usually refers to the actual transfer of money for a stated purpose such as trade, family support or services. A trade remittance is linked to purchase or sale of goods or services, such as payment by an Indian importer to a foreign supplier or receipt of export earnings. A non trade remittance is not linked to goods, and covers items such as education fees, medical treatment, travel and family maintenance.
Outward remittance means money sent out of India, while inward remittance means money received into India. All such transfers must follow the Foreign Exchange Management Act, 1999, which is the law that controls foreign exchange dealings in India. The Reserve Bank of India issues licences and directions under this law and monitors reporting through systems such as the Export Data Processing and Monitoring System and the Import Data Processing and Management System.
How Cross Border Payments Work
A cross border payment moves through regulated banks and licensed entities in clear stages. The customer submits identity proof, the purpose of payment and supporting documents such as an invoice or admission letter. The licensed entity checks these documents, verifies compliance with FEMA limits and confirms that the goods or services are not restricted under the Foreign Trade Policy. The Indian entity then settles the payment through its foreign currency account or through an Authorised Dealer bank, and the foreign seller receives the funds. The transaction details are reported so that export and import entries can be closed in official records.
From Money Changer to Authorised Dealer: How the Licence Evolved
A Full-Fledged Money Changer has the narrowest permission. It can buy foreign currency notes and travellers cheques and sell foreign exchange only for travel purposes. An Authorised Dealer Category-II entity has wider powers. It can do everything an FFMC can do and also release foreign exchange for specified non trade current account transactions. Under the Foreign Exchange Management (Authorised Persons) Regulations, 2026, an AD Category-II entity can also handle foreign trade transactions up to ₹25 lakh per transaction.
The table below shows how the three relevant permissions differ.
| Licence Type | Who Grants It | What It Allows | Key Limit or Condition |
|---|---|---|---|
| Full-Fledged Money Changer | Reserve Bank of India under Section 10 of FEMA | Purchase of foreign currency and sale for private and business travel, work as agent under Money Transfer Service Scheme | Minimum net owned funds of ₹25 lakh for single branch and ₹50 lakh for multiple branches |
| Authorised Dealer Category-II | Reserve Bank of India under Section 10 of FEMA | All FFMC activities plus specified non trade remittances and foreign trade transactions | Minimum net worth of ₹10 crore, minimum annual forex turnover of ₹50 crore, trade up to ₹25 lakh per transaction |
| Payment Aggregator Cross Border | Reserve Bank of India under Payment and Settlement Systems Act, 2007 and FEMA | Collection and settlement of online import and export payments for onboarded merchants | Minimum net worth of ₹15 crore at application and ₹25 crore by March 2026 for existing players, per transaction cap of ₹25 lakh |
RNFI Money moved step by step across this ladder. It began as an FFMC in 2020. In 2025 the company invested up to ₹6 crore through a rights issue to strengthen the net worth of RNFI Money to meet the ₹15 crore requirement for cross border payment aggregator readiness. In July 2026 the Reserve Bank of India upgraded its FFMC licence to AD-II status. The September 2026 order completed the process by granting perpetual validity and adding trade remittances to the permitted list.
The perpetual tag is important because the Reserve Bank of India has tightened the forex authorisation framework in 2026. Fresh FFMC licences are generally not considered, applications now flow through the PRAVAAH portal, and existing authorised persons must meet fit and proper norms, turnover tests and concurrent audit rules. In this stricter regime, a perpetual AD-II licence reduces renewal risk and signals sustained compliance.
Why Nostro Accounts and Forex Correspondents Matter
A Nostro account is an account that an Indian bank or authorised entity holds in foreign currency with a bank in another country. The phrase comes from the Latin word for ours, because the Indian holder treats it as our money kept abroad. When an Indian importer pays a supplier in dollars or euros, the payment is often settled from this Nostro balance. Permission to open Nostro accounts allows RNFI Money to manage settlement timing, reduce dependence on other banks for every payment and handle export receipts and import payouts more directly after completing the Reserve Bank of India process.
A Forex Correspondent is an agent appointed by an Authorised Dealer Category-I or Category-II entity to conduct money changing business under a principal agent model. The correspondent collects documents, guides the customer and forwards the case to the principal, but the principal remains fully responsible for Know Your Customer checks, screening, accounting and reporting. RNFI Money plans to select Forex Correspondents in phases from its existing Sahayak network. All transactions will be processed centrally and monitored under a single compliance system.
A payment aggregator collects money from customers and passes it to merchants, while a payment gateway only provides the technology pipe to route the payment without touching the funds. RNFI Money operates under the Authorised Dealer route, which is distinct from the Payment Aggregator Cross Border (PA-CB) route created by the Reserve Bank of India circular of 31 October 2023 and consolidated in the Master Direction of 15 September 2025. The AD route allows specified foreign exchange dealings directly, while the PA-CB route governs online collection and settlement of import and export payments through escrow style collection accounts. RNFI’s parallel in principle approval for Payment Aggregator Physical adds a domestic face to face collection capability alongside this foreign exchange capability.
Significance for Small Businesses and Last Mile Access
Cross border payments in India have remained concentrated in bank branches and metro forex counters. Small exporters, importers and micro, small and medium enterprises in smaller towns often struggle to find nearby, compliant channels for trade payments. They must travel to cities, pay higher service charges or depend on intermediaries. By using trained Forex Correspondents inside existing kirana and retail outlets, RNFI Money can bring assisted documentation, transparent pricing and regulated settlement closer to these firms.
The model keeps risk control at the centre. The Reserve Bank of India requires customer due diligence under its Know Your Customer Direction, 2016, a ban on restricted goods under the Foreign Trade Policy, and full audit trails for every foreign exchange transaction. RNFI Money has stated that selection, training and monitoring of correspondents will follow these rules and that all reporting will flow through its central system to the relevant Authorised Dealer Category-I bank for closure in export and import monitoring systems. This balance of local access with central control is the core test for scaling the service safely.
For the company, trade remittances open a new fee based segment beyond travel forex and domestic transfers. For the financial system, it adds another regulated touchpoint for formalising small value trade, improving documentation and widening competition in a market long dominated by large banks.
Key Takeaways
- RNFI Money Private Limited received RBI approval on 21 September 2026 for perpetual validity of its Authorised Dealer Category-II licence with permission for trade remittances.
- The expanded licence also allows RNFI Money to open Nostro accounts and appoint Forex Correspondents under the Foreign Exchange Management Act, 1999.
- RNFI Money, incorporated on 20 June 2019, is a wholly owned subsidiary of RNFI Services Limited, which was incorporated in 2015 and listed on NSE Emerge in July 2024.
- An Authorised Dealer Category-II entity needs minimum net worth of ₹10 crore and can handle foreign trade transactions up to ₹25 lakh per transaction.
- RNFI plans to extend regulated forex services through its network of more than 2.8 lakh active agents to support small exporters and importers outside metro cities.
