The Reserve Bank of India (RBI) has released fresh regulations called the Foreign Exchange Management (Authorised Persons) Regulations, 2026.
These rules set stricter guidelines for companies and institutions involved in foreign currency exchange.
The main aim is to make the forex system more transparent, well-regulated, and secure for financial transactions in India.
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Who Can Work as a Forex Dealer Now?
Under the new rules, only eligible entities will be allowed to deal in foreign exchange.
RBI has clearly divided forex dealers into three categories:
AD Category-I
Only banks licensed by the RBI can apply under this category
AD Category-II
RBI-registered banks and NBFCs can apply
Existing money changers must have at least 2 years of experience
They must also have an average forex turnover of ₹50 crore in the last two financial years
AD Category-III
Companies that deal in forex as part of their business
Or firms offering new and innovative forex-related services
How to Apply for Authorization
Any new applicant must apply through the RBI’s PRAVAAH portal.
Applications will be reviewed by the RBI regional office based on where the company is registered.
The RBI will not accept new applications for Full-Fledged Money Changers (FFMCs), except those already under process when the rules come into effect.
If pending applicants fail to submit required documents within 30 days, their applications will be automatically rejected.
Key Eligibility Requirements
To become an authorised forex dealer, a company must:
Be registered under the Companies Act, 2013
Include forex-related business in its Memorandum of Association (MoA)
Meet financial and operational criteria set by RBI
Minimum net worth requirements:
AD Category-II: ₹10 crore
AD Category-III: ₹2 crore
Rules for Existing Forex Dealers
Existing authorised forex dealers can continue operating until their current approval expires.
However, they must follow the new regulations and RBI directions during this period.
For renewal, companies must meet the following net worth requirements:
₹25 lakh for single-branch FFMCs
₹50 lakh for multi-branch FFMCs
₹10 crore for AD Category-II entities
₹2 crore for AD Category-III entities
Applications for renewal must be submitted at least two months before expiry of the current authorisation.
If submitted on time, the approval will remain valid until the RBI decides on renewal.
What These Rules Mean for the Forex Sector
The new RBI framework aims to:
Improve transparency in forex operations
Ensure only financially strong companies operate in the sector
Encourage innovation in digital and forex-related services
Strengthen overall regulation of foreign exchange activities in India
With these changes, RBI is tightening control while also allowing structured growth in the forex market.