Systemically important non-deposit taking NBFCs (investment and credit companies) should have a ‘minimum investment grade rating’ to get a licence to deal in foreign exchange, according to the Reserve Bank of India.
The central bank is planning to give Authorised Dealer-Category II licence to NBFCs to increase the accessibility and efficiency of services extended to the members of the public for their day-to-day non-trade current account transactions.
The RBI said NBFCs offering services relating to forex transactions on individual accounts have to put in place a board-approved policy on (a) managing the risks, including currency risk, if any, and (b) handling customer grievances arising out of such activities. A monitoring mechanism, at least at monthly intervals, should be put in place for such services.
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