Money & Banking

Non-deposit taking NBFCs must have ‘minimum investment grade rating’ to get forex trade licence: RBI

Our Bureau Mumbai | Updated on April 16, 2019 Published on April 16, 2019

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.

Published on April 16, 2019
This article is closed for comments.
Please Email the Editor