The Reserve Bank of India (RBI) has released a draft- 'Licensing Framework for Authorised Persons (APs)' under Foreign Exchange Management Act (FEMA), 1999.
According to RBI release, the focus of the draft norms is on rationalising the authorisation framework for money changers in view of the widespread availability of banking services to public, to look at alternate models for facilitating foreign exchange related services and improve the scope of services being offered by AD-Category II entities. It added that it will also review the regulatory framework for APs.
The RBI had, in its June monetary policy meeting, said that the Central Bank decided to rationalise and simplify the licensing framework for APs to effectively meet the emerging requirements of the rapidly growing Indian economy.
