In a move that will make it easy to purchase foreign exchange for overseas travel, the Reserve Bank of India, on Thursday, announced that certain non-banking financial companies will be able to get a licence as authorised foreign exchange dealer.
“With a view to improve the ease of undertaking forex transactions by increasing the last-mile touch-points of regulated entities to sell foreign exchange for non-trade current account transactions, it has been decided that non-deposit taking systemically important NBFCs (NBFCs-NDSI) in the category of Investment and Credit Companies (ICCs) will be made eligible to apply for grant of Authorised Dealer Category II licence,” said the statement on Developmental and Regulatory Policies, which was released along with the first bi-monthly Monetary Policy Statement of 2019-20.
Detailed guidelines soon
The RBI will issue detailed guidelines on this proposal by the end of the month. At present, under the Foreign Exchange Management Act, 1999, foreign exchange transactions are only handled by authorised bodies such as banks.
The move comes at a time when more and more Indians are travelling abroad for studies, medical services, and tourism, and is expected to help them get foreign exchange easily through more dealers.