The Reserve Bank of India (RBI) on May 06, 2026, updated the Master Direction - Money Changing Activities.
The Reserve Bank of India (RBI), under Section 10(1) of the Foreign Exchange Management Act, 1999 (FEMA), may authorize entities as “Authorised Persons” to deal in foreign exchange as authorised dealers, money changers, offshore banking units, or in other permitted capacities. This framework governs entities engaged in foreign exchange transactions and related activities in India.
To streamline and consolidate regulatory instructions, the RBI has issued a comprehensive Master Direction covering money changing activities and the conduct of foreign exchange transactions under Sections 10(4) and 11(1) of FEMA. This consolidated direction brings together various guidelines, notifications, and circulars into a single reference document, without affecting any additional approvals required under other applicable laws.
The Master Direction also includes an appendix listing the underlying circulars and notifications forming its basis, while separate reporting requirements are covered under the Master Direction on Reporting under FEMA, 1999 (dated January 01, 2016, as amended). Authorised Persons are advised to refer to specific circulars where detailed clarification is required.
Further, the RBI retains the authority to issue updates through A.P. (DIR Series) Circulars to reflect changes in rules or transaction procedures. Accordingly, the Master Direction will be updated from time to time. This version replaces the earlier Master Direction on Money Changing Activities (January 01, 2016) for ease of reference due to significant amendments.
[Notification No.RBI/FED/2015-16/17 FED Master Direction No.3/2015-16]
