Issuance of Foreign Exchange Management (Authorised Persons) Regulations, 2026

RESERVE BANK OF INDIA

RBI/2026-27/78
A.P. (DIR Series) Circular No. 09

Date: May 06, 2026

To,

All Authorised Persons

Subject: Issuance of Foreign Exchange Management (Authorised Persons) Regulations, 2026

Madam / Sir,

The Reserve Bank has reviewed the existing framework for authorisation of any person as an Authorised Person under the Foreign Exchange Management Act, 1999, with the objective of rationalising the framework to improve delivery of foreign exchange services as well as easing compliance requirements.

Accordingly, the Foreign Exchange Management (Authorised Persons) Regulations, 2026 have been notified vide Notification No. FEMA 401/2026-RB dated April 30, 2026 (published in the Official Gazette on May 06, 2026). All authorised persons shall comply with the aforementioned regulations as applicable to them.

Key Points:

1. Amendments to Master Directions
   • Instructions contained in:
     • Master Direction – Money Changing Activities
     • Master Direction – Other Remittance Facilities
       are being amended as per Annex I.
2. Supersession of Circulars
   • Certain A.P. (DIR Series) Circulars listed in Annex II stand superseded.
3. Legal Authority
   • These directions are issued under:
     • Section 10(4)
     • Section 11 of FEMA, 1999
   • These are without prejudice to approvals required under any other law.

Important Regulatory Changes (Highlights):

• No new franchisee arrangements for money changing business will be allowed going forward.
• Existing franchisee arrangements must be discontinued within 2 years (by May 06, 2028).
• FFMCs / Non-bank AD Category-II entities must:
  • Submit audited balance sheet by 31st October every year
  • Submit forex turnover certificate by 30th April every year

Annex I (Summary of Changes):

Omitted Sections Include:

• Various paras and sections of Master Direction – Money Changing Activities
• Para 2 of Master Direction – Other Remittance Facilities

Modified Provisions Include:

• Simplified regulatory framework
• Revised compliance and reporting requirements
• Updated rules for franchisee operations

Annex II: Circulars Superseded (Illustrative)

• A.P. (DIR Series) Circular No. 20 – Nov 16, 2000
• A.P. (DIR Series) Circular No. 11 – Nov 13, 2001
• A.P. (DIR Series) Circular No. 25 – Mar 06, 2006
• A.P. (DIR Series) Circular No. 40 – Dec 10, 2008
• A.P. (DIR Series) Circular No. 61 – May 16, 2011
• (and other listed circulars)

Yours Sincerely,
(N. Senthil Kumar)
Chief General Manager
Reserve Bank of India