FED Master Direction No.3/2015-16
January 1, 2016
All Authorised Persons in Foreign Exchange
Madam / Dear Sir,
Master Direction – Money Changing Activities
In terms of Section 10 of the Foreign Exchange Management Act, 1999, Reserve Bank authorises persons designated as Authorised Persons to deal in foreign exchange as, inter alia, an Authorised Dealer or a money changer.
2. Authorised Money Changers (otherwise called a Full Fledged Money Changers) and Authorised Dealers Category II entities (AD Cat II) carry out specified (current account) foreign exchange transactions with their customers/ constituents. In addition, Authorised Money Changers and AD Category II can also appoint franchisees to undertake purchase of foreign exchange from residents and non-residents.
3. Reserve Bank issues directions to Authorised Persons under Section 11 of the Foreign Exchange Management Act, 1999, in regard to conduct foreign exchange business in compliance with the provisions of the Act and any rules, regulations, notifications, directions or orders made there under.
4. The directions relating to authorization, functioning of the money changers and Authorised Dealer Category II entities and their franchisees as well as the conduct of foreign exchange transactions with their customers/constituents are being issued in a consolidated form through the Master Direction enclosed herewith. Reporting instructions can be found in Master Direction on Reporting. It may be noted that whenever necessary, Reserve Bank shall issue directions to Authorised Persons through A.P. (DIR Series) Circulars in regard to any change in the rules, regulations, notifications, directions or orders or the manner in which relative transactions are to be conducted by the Authorised Persons with their customers/constituents. The Master Direction issued herewith shall be amended suitably simultaneously.
(B P Kanungo)
Principal Chief General Manager