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What is Rupee Drawing Arrangement (RDA)?

Staying outside India and need to make bill payments for your family in India? You can do so under Rupee Drawing Arrangement (RDA).

What is Rupee Drawing Arrangement (RDA)?

Rupee Drawing Arrangement (RDA) is a channel for beneficiaries in India to receive cross-border inward remittances from overseas jurisdictions. 

This scheme is not used for cross-border outward remittances from India.

What are the restrictions under RDA?

There is no limit on the remittance amount as well as on the number of remittances. However, there is an upper cap of Rs.15 lakh for trade related transactions.

No cash disbursement of remittances is allowed under RDA. The remittances must be credited to the bank account of the beneficiary. 

What is RDA – ‘Direct to Account’ Facility?

Foreign inward remittances received under RDA can be transferred to the KYC compliant beneficiary bank accounts through electronic mode, such as, NEFT, IMPS, etc. 

Now, the foreign inward remittances received under RDA can also be transferred to the KYC compliant bank account of the biller (beneficiary) through Bharat Bill Payment System (BBPS).


References

Reserve Bank of India. (2017, January 18). 'FAQ-Remittances [Money Transfer Service Scheme (MTSS) and Rupee Drawing Arrangement (RDA)]'. Retrieved from https://www.rbi.org.in/Scripts/FAQView.aspx?Id=112

Reserve Bank of India. (2022, September 15). 'Rupee Drawing Arrangement - Enabling Bharat Bill Payment System (BBPS) to process cross-border inbound Bill Payments'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12386&Mode=0


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