New Delhi, Sep21: RNFI Services Limited, a last-mile financial infrastructure company, today announced a significant regulatory milestone with the Reserve Bank of India approving perpetual validity of the Authorised Dealer Category-II foreign exchange licence held by its wholly-owned subsidiary, RNFI Money Private Limited. The approval also expands the licence to include trade remittances, Nostro accounts and the appointment of Forex Correspondents.
The expanded licence strengthens RNFI Money’s ability to build its cross-border payments business over the long term and extend regulated foreign exchange, remittance and trade payment services through RNFI’s existing last-mile network across India. It also builds on RNFI’s recent in-principle authorisation from RBI to operate as a Payment Aggregator – Physical, adding another regulated capability to the Company’s growing financial infrastructure platform
Commenting on this milestone, Ranveer Khyaliya, Managing Director, RNFI Services Limited says,
“Perpetual validity reflects the RBI’s confidence in RNFI Money’s governance and compliance record, and gives us the certainty to build our cross-border business for the long term. Cross-border payments in India have been concentrated in bank branches and metro forex counters. By appointing Forex Correspondents from our network of over 2.8 lakh active agents in phases, and in full alignment with RBI guidelines, we can take regulated forex, remittance and trade payment services to families and small businesses across the country.”
Taking cross-border financial services closer to Bharat and support smaller exporters and importers
RNFI Money’s expanded licence enables it to extend regulated forex, remittance and trade payment services beyond conventional banking and forex touchpoints. Its existing network of more than 2.8 lakh active retail agents already supports Aadhaar-enabled payments, domestic money transfers and banking correspondent services. By progressively appointing Forex Correspondents from this network, RNFI Money can bring assisted access to foreign exchange and trade payments closer to smaller exporters, importers and MSMEs, including those outside major urban centres, while the rollout will be gradual, transactions remain centrally processed and monitored in accordance with RBI and FEMA requirements.
According to Harish Kaushik, Director, RNFI Money Private Limited,
“The addition of trade remittances opens a significant new segment for us. Smaller exporters and importers have had few accessible options for cross-border payments. With our reach in smaller towns, and the ability to open Nostro accounts after completing the RBI process, we can serve these businesses with a simple, transparent and fully compliant service. We will scale it carefully, one phase at a time.”
Centralised compliance framework
RNFI Money will remain responsible for all transactions undertaken through its Forex Correspondents, with KYC, documentation, screening, transaction monitoring and regulatory reporting managed through its central compliance framework. Forex Correspondents will be selected, trained and monitored in accordance with applicable RBI requirements, allowing RNFI Money to expand the network progressively while retaining central oversight of the regulated services delivered through it.
Neeraj Upreti, Group Chief Compliance Officer, RNFI says,
“A perpetual licence brings a greater responsibility to maintain the highest standards of compliance. Every Forex Correspondent will be selected, trained and monitored as per RBI guidelines. Every transaction, whether initiated directly or through a correspondent, will pass through our central KYC, screening and monitoring systems. We will grow the network only as fast as our controls allow.”
RNFI’s AD-II licence forms part of its broader strategy to build multiple regulated financial services around a common last-mile infrastructure Its capabilities span global money movement through its RBI-authorised AD Category-II licence, mutual fund distribution through its AMFI-registered ARN, insurance through its IRDAI-registered insurance broking business, stored value through its RBI-authorised PPI business, and physical payments through its RBI in-principle authorisation to operate as a Payment Aggregator – Physical. Consolidated under the Relipay brand, these capabilities enable RNFI to leverage its existing distribution, technology and field infrastructure to serve customers across urban, semi-urban and rural markets.