More Forex Players: Are Your Remittance Costs Dropping?

A payments company just got RBI authorisation to offer wider cross-border and forex services in India. More licensed forex players usually means better rates and lower fees when you send money abroad or buy foreign currency.

Here's what happened: A payments company received an expanded RBI authorisation as an Authorised Dealer Category II, allowing it to offer a broader range of forex and cross-border payment services under FEMA.. AD Category II licences permit non-bank entities to conduct specific foreign exchange transactions — including outward remittances, travel forex, and international business payments for individuals.. Growing competition among RBI-authorised forex players is gradually shifting the cross-border payments market away from bank-only dominance, where forex markups have historically been highest..

What you should do: Compare the all-in exchange rate (mid-market rate minus what you actually receive) across at least 3 RBI-authorised forex providers before your next international transfer — not just the advertised rate.. Check that any forex service or remittance app you use is listed as an Authorised Dealer or Money Transfer Service Operator on the RBI's official website before sharing your bank or KYC details.. If you regularly send money abroad for tuition, family support, or freelance income receipt, set a rate alert on a rate-comparison tool so you transfer only when the rupee-to-dollar rate favours you..

Banks are legally required to disclose the forex conversion markup separately from transfer fees — ask for the 'exchange rate margin' in writing before confirming any wire transfer.

If this affects your borrowing choices, compare current personal loan options from 100+ lenders on GoCredit.