In a landmark decision, EbixCash World Money Ltd has received a perpetual Authorised Dealer Category-II (AD-II) licence from the Reserve Bank of India (RBI). The regulatory nod grants EbixCash permission to handle cross-border trade remittances and family maintenance transfers, making it the first non-banking entity in India authorized to execute these corporate foreign exchange transactions.
Executive Summary: Key Highlights of the Regulatory Approval
| Parameter | Details |
| Entity | EbixCash World Money Ltd (Subsidiary of EbixCash) |
| Licence Type | Perpetual Authorised Dealer Category-II (AD-II) |
| Regulator | Reserve Bank of India (RBI) |
| Permitted Transaction Cap | Up to ₹25 lakh per transaction for trade remittances |
| Target Audience | Micro, Small, and Medium Enterprises (MSMEs), importers, and exporters |
| Physical Reach | 100+ branches across 70+ Indian cities; 25,000+ total touchpoints |
Strategic Shift in Cross-Border Trade & MSME Banking
Historically, cross-border trade settlements were the exclusive domain of commercial banks (Authorised Dealer Category-I institutions). RBI’s recent policy shift under the Foreign Exchange Management Act (FEMA) framework unlocks key operational advantages for Indian businesses:
-
Eliminating Banking Bottlenecks: Indian MSMEs engaging in international commerce can now process trade transactions directly through EbixCash without requiring a full-fledged commercial banking relationship, significantly cutting documentation friction and turnaround times.
-
Direct International Clearing: EbixCash holds RBI approval to maintain independent Nostro accounts, enabling direct settlement of international transfers without having to route funds through third-party correspondent banks.
-
Financial Inclusion for Small Exporters: The ₹25 lakh transaction threshold specifically targets the high-volume, lower-ticket remittance needs of small manufacturers, merchants, and service exporters across Tier-2 and Tier-3 cities.
“This licence is a structural shift for India’s trade ecosystem. For nearly three decades, trade remittances were the exclusive domain of banks. Earning the RBI’s endorsement positions EbixCash to directly serve the MSME exporters and importers who have historically faced processing delays.”
— Himanshu Pramanick, Chief Compliance Officer, EbixCash World Money
Market Footprint & Infrastructure
-
Remittance Dominance: EbixCash facilitates over 75% of India’s cash-to-cash inward remittances and approximately 20% of outward remittances under the RBI’s Liberalised Remittance Scheme (LRS) routed via AD-II channels.
-
Global Real-Time Rails: The company was among the early Indian ADs to integrate with real-time settlement rails like Europe’s SEPA Instant and the UK’s Faster Payments Service.
-
Bank Network: EbixCash supplies foreign currency to over 40 partner banks and operates foreign exchange counters at 23 international airports across India.
