Foreign exchange or forex transactions in India are regulated by the RBI and the FEMA framework. The Foreign Exchange Management Act, 1999, governs the country’s foreign exchange regulations. The RBI introduced new Foreign Exchange Management (Authorised Persons) Regulations, 2026. <\/p>\n\n\n\n
These new rules bring transparency to the forex business, strengthen compliance, and monitor forex activities. Earlier, the rules were different in many places. Now, the RBI has brought them into a more structured framework. <\/p>\n\n\n\n
These Foreign Exchange Management (Authorised Persons) Regulations, 2026, will affect banks, NBFCs, FFMC license<\/a><\/strong> holders, exporters, importers, and various businesses dealing in forex. RBI wants India’s forex system to be more organized, secure, and compliance-driven. This will reduce unauthorised forex activities and improve market<\/a> discipline. <\/p>\n\n\n\n RBI’s new Foreign Exchange Management (Authorised Persons) Regulations, 2026, is a framework that determines who can deal in foreign exchange in India and how they can do so. No person or entity can do forex business without the RBI’s permission. <\/p>\n\n\n\n The RBI’s new Foreign Exchange Management (Authorised Persons) Regulations, 2026, have brought together many previous fragmented guidelines into a structured system. This will reduce confusion in the forex market and help to maintain compliance. <\/p>\n\n\n\n RBI now has clear powers to approve, reject, suspend, or cancel the license of authorised entities. If any entity does Forex activity outside the permission, then it will be considered a FEMA violation. <\/p>\n\n\n\n This framework is making India’s forex ecosystem more compliance-driven. Along with this, emphasis has been placed on increasing governance, accountability, and operational transparency. This will make the forex sector more regulated and reliable. <\/p>\n\n\n\n This category mainly includes licensed banks. They can handle current account and capital account transactions under FEMA. Large forex transactions, international remittance, and foreign exchange services are usually handled by these entities. <\/p>\n\n\n\n This category can include banks, NBFCs, FFMCs, and eligible Forex correspondents. However, they should have at least 2 years of experience and an average forex turnover of ₹50 crore. <\/p>\n\n\n\n They can handle non-trade current account transactions and foreign trade transactions up to ₹25 lakh. RBI has made the turnover and compliance rules more stringent for this category. <\/p>\n\n\n\n This category is mainly for those entities whose core business involves forex dealing. They can also offer innovative forex-linked products. <\/p>\n\n\n\n However, the type of forex activities they can do will be mentioned separately in the RBI’s authorisation letter. <\/p>\n\n\n\n FFMCs or Full Fledged Money Changers can deal in foreign currency and traveller’s cheques. They can also work as MTSS agents. <\/p>\n\n\n\n However, the RBI will not issue any fresh FFMC licenses. Only applications that are already pending will be considered. <\/p>\n\n\n\n RBI is moving away from standalone FFMC and the old franchisee model. Instead, more emphasis is being placed on the Forex Correspondent framework so that monitoring and accountability are better. <\/p>\n\n\n\n As per the new forex rules, the applicant entity must be a registered company under the Companies Act, 2013. In addition, the company’s Memorandum of Association (MOA) must mention forex activities. <\/p>\n\n\n\n RBI has set minimum net worth requirements for different categories. <\/p>\n\n\n\nRBI’s Foreign Exchange Management (Authorised Persons) Regulations, 2026 In Brief <\/h2>\n\n\n\n
Category of Authorised Dealer in The New Rule <\/h2>\n\n\n\n
AD Category-I <\/h3>\n\n\n\n
AD Category-II <\/h3>\n\n\n\n
AD Category-III <\/h3>\n\n\n\n
FFMCs <\/h3>\n\n\n\n
Eligibility and Net Worth Requirements <\/h2>\n\n\n\n