FEMA – Who is an Authorized Person under FEMA?
- Blog|FEMA & Banking|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 13 May, 2021
Latest from Taxmann
Categories of Authorised Persons Under FEMA:
Categories of ‘Authorised Persons’ are as follows:
|
Category |
Entities |
Permitted Activities |
|
Authorized Dealer – Category I |
Commercial Banks, State Co-op Banks, Urban Co-op Banks |
All current and capital account transactions as per RBI directions issued from time to time |
|
Authorized Dealer- Category II |
Upgraded FFMCs, Coop Banks, Regional Rural Banks (RRBs), others |
Specified non-trade related current account transactions and all activities permitted to FFMC |
|
Authorized Dealer – Category III |
Select Financial and other institutions |
Transactions incidental to the foreign exchange |
|
Full Fledged Money Changers (FFMC) |
Department of Post, Urban Co-op Banks, Other FFMC |
Purchase of foreign exchange and sale for private and business visits abroad. |
Activities by Authorised Dealer – Category II:
Authorized Dealers – Category II can undertake the following transactions – a) Private visits and business visits b) Remittances of tour operators c) Participation in international events, global conferences, and specialized training d) Medical treatment abroad e) Overseas education f) Remittance of examination fees for GRE, TOEFL, etc. g) Employment and overseas job applications h) Emigration and Emigration Consultancy fees i) Visa fees j) Fees for registration of documents k) Fees for International Organisations
Authorized Dealers Category I:
Generally, all nationalized banks, leading non-nationalized banks, and foreign banks are appointed as ‘Authorised Dealers Category I’ to deal in foreign exchange. They can deal in all other transactions in foreign exchange like bill of exchange, cheques, letters of credit, deposits, etc. They can freely purchase from the public in India TTs, MTs, drafts, bills, etc. drawn in any foreign currency against rupees.
1. Branches of Authorised Dealers Category I Banks dealing in Foreign Exchange:
Information about authorized branches of AD category I banks is available on dbie.org.in.
-
- You have to go to ‘To View Data Series – Click Here’ and click
- Then select Corporate Categories, Reports, By Subject, Financial Sector, Money and banking and then Banking Banks should update information about their branches to RBI in a prescribed proforma.
Information should also, be provided in a soft copy using the RBIMOF Application package.
2. FETERS – Electronic Returns to RBI:
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