RBI Revamps Forex Regulations: A New Era for Authorized Dealers

The Reserve Bank of India has revised its regulations for entities dealing in foreign exchange. The aim is to streamline authorization and compliance, categorizing authorized dealers into three categories based on their capabilities and business model. New licenses will not be issued to money changers.

The Reserve Bank of India (RBI) has introduced revised norms for entities engaged in foreign exchange transactions, a move intended to streamline the authorization process and ease compliance requirements.

The newly unveiled Foreign Exchange Management (Authorised Persons) Regulations, 2026, replace older frameworks, setting out specific guidelines for different categories of authorized dealers. Banks, NBFCs, and seasoned forex correspondents, as well as firms aiming to offer innovative forex services, are subject to these changes.

Under these regulations, new licenses will not be granted to fresh money changers. However, applications already in process will be considered. Entities must be incorporated under the Companies Act, 2013, and meet specific net worth criteria to gain RBI authorization.