RBI Notifies Draft Licensing Framework for Authorised Persons (APs) Under FEMA

Press Release: 2023-2024/1543, Dated 26.12.2023

The framework for licensing of Authorised Persons (APs) under FEMA, 1999 was last reviewed in March 2006. Keeping in view the progressive liberalisation under FEMA, increasing integration of the Indian economy with the global economy, digitisation of payment systems, evolving institutional structure, etc. over the last two decades, RBI has decided to rationalise and simplify the licensing framework for APs.

The review aims to meet the emerging requirements of the rapidly growing Indian economy and achieve operational efficiency in the delivery of foreign exchange facilities to common persons, tourists, and businesses while maintaining appropriate checks and balances.

Now, RBI has proposed to introduce a new category of money changers who may conduct business through an agency model by becoming Forex Correspondent of Authorised Dealers. The review aims to meet the emerging requirements of the rapidly growing Indian economy and achieve operational efficiency.

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