Mumbai, May 14 -- The Reserve Bank of India on Thursday relaxed rules governing tie-ups between banks and non-bank entities for outward remittances used largely by individuals, shifting responsibility to banks to ensure regulatory compliance by their partners.

The move is expected to streamline cross-border payments for non-trade purposes such as overseas education, medical treatment, overseas investments, travel and family maintenance, while increasing transparency on foreign exchange rates and charges disclosed to customers. Top destinations for outward remittances from India are the US, the UAE, the UK, Canada and Australia.

The rules are applicable for tie-ups with authorised dealer category- 1 (AD-1) banks. All commercial banks and...