diff --git a/amps/ags/rm-automation/rm-automation-community-rest-api/src/test/java/org/alfresco/rest/rm/community/rules/CopyToRuleOnFoldersTest.java b/amps/ags/rm-automation/rm-automation-community-rest-api/src/test/java/org/alfresco/rest/rm/community/rules/CopyToRuleOnFoldersTest.java
new file mode 100644
index 0000000000..c3885f8f41
--- /dev/null
+++ b/amps/ags/rm-automation/rm-automation-community-rest-api/src/test/java/org/alfresco/rest/rm/community/rules/CopyToRuleOnFoldersTest.java
@@ -0,0 +1,113 @@
+/*
+ * #%L
+ * Alfresco Records Management Module
+ * %%
+ * Copyright (C) 2005 - 2022 Alfresco Software Limited
+ * %%
+ * This file is part of the Alfresco software.
+ * -
+ * If the software was purchased under a paid Alfresco license, the terms of
+ * the paid license agreement will prevail.  Otherwise, the software is
+ * provided under the following open source license terms:
+ * -
+ * Alfresco is free software: you can redistribute it and/or modify
+ * it under the terms of the GNU Lesser General Public License as published by
+ * the Free Software Foundation, either version 3 of the License, or
+ * (at your option) any later version.
+ * -
+ * Alfresco is distributed in the hope that it will be useful,
+ * but WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+ * GNU Lesser General Public License for more details.
+ * -
+ * You should have received a copy of the GNU Lesser General Public License
+ * along with Alfresco. If not, see <http://www.gnu.org/licenses/>.
+ * #L%
+ */
+package org.alfresco.rest.rm.community.rules;
+
+import org.alfresco.rest.rm.community.base.BaseRMRestTest;
+import org.alfresco.rest.rm.community.model.record.Record;
+import org.alfresco.rest.rm.community.model.recordcategory.RecordCategory;
+import org.alfresco.rest.rm.community.model.recordcategory.RecordCategoryChild;
+import org.alfresco.rest.rm.community.model.rules.ActionsOnRule;
+import org.alfresco.rest.rm.community.model.rules.RuleDefinition;
+import org.alfresco.rest.rm.community.requests.gscore.api.RecordFolderAPI;
+import org.alfresco.rest.rm.community.requests.gscore.api.RecordsAPI;
+import org.alfresco.rest.rm.community.smoke.CreateCategoriesTests;
+import org.alfresco.rest.v0.RulesAPI;
+import org.alfresco.test.AlfrescoTest;
+import org.springframework.beans.factory.annotation.Autowired;
+import org.testng.annotations.Test;
+
+import java.util.Collections;
+
+import static org.alfresco.rest.core.v0.BaseAPI.NODE_PREFIX;
+import static org.alfresco.rest.rm.community.base.TestData.ELECTRONIC_RECORD_NAME;
+import static org.alfresco.rest.rm.community.base.TestData.NONELECTRONIC_RECORD_NAME;
+import static org.alfresco.rest.rm.community.util.CommonTestUtils.generateTestPrefix;
+import static org.alfresco.rest.rm.community.utils.CoreUtil.createBodyForMoveCopy;
+import static org.alfresco.rest.rm.community.utils.CoreUtil.toContentModel;
+import static org.alfresco.rest.rm.community.utils.FilePlanComponentsUtil.*;
+import static org.alfresco.utility.data.RandomData.getRandomName;
+import static org.alfresco.utility.report.log.Step.STEP;
+import static org.springframework.http.HttpStatus.*;
+
+public class CopyToRuleOnFoldersTest extends BaseRMRestTest {
+
+    private RecordCategory category;
+    private RecordCategoryChild folder1,folder2;
+    private final static String title = "Run in background";
+    private final String TEST_PREFIX = generateTestPrefix(CopyToRuleOnFoldersTest.class);
+    private final String RM_ADMIN = TEST_PREFIX + "rm_admin";
+    private final String electronicRecord = TEST_PREFIX + "record_electronic_for_copyTo";
+    private final String nonElectronicRecord = TEST_PREFIX + "record_non_electronic_for_copyTo";
+
+    @Autowired
+    private RulesAPI rulesAPI;
+
+    @Test
+    @AlfrescoTest(jira = "RM-2994")
+    public void copyToRuleOnFoldersTest()
+    {
+
+        RuleDefinition ruleDefinition = RuleDefinition.createNewRule().title("name").description("description1")
+            .runInBackground(true).title(title)
+            .actions(Collections.singletonList(ActionsOnRule.COPY_TO.getActionValue()));
+
+
+        STEP("Create the RM site if doesn't exist");
+        createRMSiteIfNotExists();
+
+        STEP("Create record categories and record folders");
+        category= createRootCategory(getRandomName("recordCategory"));
+        String folder1 = createCategoryFolderInFilePlan().getId();
+        String folder2 = createCategoryFolderInFilePlan().getId();
+
+        // create a rule on folder
+        rulesAPI.createRule(getAdminUser().getUsername(), getAdminUser().getPassword(), NODE_PREFIX + folder1, ruleDefinition);
+
+        // create electronic record in record folder
+        String electronicRecordId = createElectronicRecord(folder1, ELECTRONIC_RECORD_NAME).getId();
+        assertStatusCode(CREATED);
+
+        // create non-electronic record in record folder
+        String nonElectronicRecord = createElectronicRecord(folder1, NONELECTRONIC_RECORD_NAME).getId();
+        assertStatusCode(CREATED);
+
+        // Move the electronic and non-electronic records from "Category with records"> "Folder with rule"
+        // to "Copy Category with records" > "Folder with rule"
+       getRestAPIFactory().getNodeAPI(toContentModel(folder1)).copy(createBodyForMoveCopy(category.getId()));
+        getRestAPIFactory().getNodeAPI(toContentModel( electronicRecord)).move(createBodyForMoveCopy(folder2));
+        getRestAPIFactory().getNodeAPI(toContentModel( nonElectronicRecord)).move(createBodyForMoveCopy(folder2));
+
+        RecordsAPI recordsAPI = getRestAPIFactory().getRecordsAPI();
+        recordsAPI.deleteRecord(electronicRecord);
+        recordsAPI.deleteRecord(nonElectronicRecord);
+        assertStatusCode(NO_CONTENT);
+
+
+    }
+
+
+}