The Reserve Bank of India (RBI) on April 30, 2026, notified the Foreign Exchange Management (Authorised Persons) Regulations, 2026
The following has been stated:-
•The Authorised Persons Regulations, 2026 provide the framework for authorisation and functioning of entities dealing in foreign exchange under the Foreign Exchange Management Act, 1999.
•No entity can act as an authorised person without approval from the Reserve Bank of India, and applications must be submitted through the PRAVAAH portal.
•The regulations classify authorised persons into AD Category I, II, and III, with defined eligibility criteria, including minimum net worth, incorporation as a company, and “fit and proper” requirements for promoters and management.
•Existing entities can continue till expiry but must seek renewal as per new norms.
•Permitted activities vary by category, ranging from full forex transactions (AD-I) to limited current account and trade transactions (AD-II/III), while FFMCs can deal in currency exchange services.
•The rules also mandate ongoing compliance with net worth, turnover, governance, and reporting requirements.
•Additionally, Forex Correspondents can be appointed under a principal-agent model with defined responsibilities, while franchisee arrangements must be phased out within two years.
•The RBI retains powers to reject applications, impose conditions, or revoke authorisation in the public interest, with an appeal mechanism available to affected entities.
These regulations shall come into force on May 06, 2026.
The detailed notification is given in the document below.
[Notification No.: FEMA 401/2026-RB]
