The IFSCA has clarified that Payment Service Providers (PSPs) must obtain prior approval before participating in the Rupee Drawing Arrangement (RDA) scheme as a non-resident Exchange House. The requirement follows its June 6, 2025 circular on participation of PSPs in international payment systems for making or receiving payments to/from banks/financial institutions outside IFSC and aligns with the RBI’s Master Direction dated January 1, 2016 titled “Opening and Maintenance of Rupee/Foreign Currency Vostro Accounts of Nonresident Exchange Houses”.
The PSPs shall, along with the request for prior permission, provide a comprehensive overview of the framework and processes put in place by it to ensure compliance with the requirements specified under IFSCA (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022, and any other applicable law(s) of a similar nature for the time being in force, in respect of the transactions proposed to be undertaken under the RDA, with immediate effect
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