RBI Policy
To release refined draft guidelines for authorised FX dealers
This story was originally published at 16:25 IST on 6 February 2026
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MUMBAI – The Reserve Bank of India has reviewed and rationalised the regulatory framework governing the facilities for authorised dealers, Governor Sanjay Malhotra said while detailing the outcome of the Monetary Policy Committee meeting on Friday. These refined regulation will allow "more flexibility in undertaking foreign exchange transactions," Malhotra said.
Banks and standalone primary dealers authorised under the Foreign Exchange Management Act, 1999, access the foreign exchange market for market making, balance sheet management and hedging of risks, the RBI said. "The revised framework provides these ADs (authorised dealers) with greater flexibility with respect to foreign exchange products, risk management and platforms," it said.
An authorised dealer in foreign exchange is a bank or financial institution, specifically authorised by the RBI under Section 10(1) of the Foreign Exchange Management Act (FEMA), 1999, to buy, sell, or remit foreign currency. These dealers include AD-I banks, primary dealerships, and money changers.
The draft for these updated guidelines will be issued shortly, the RBI said. On Friday, the rate-setting panel left the policy repo rate unchanged at 5.25% in a unanimous decision. It also retained the 'neutral' policy stance even as external member Ram Singh was of the view that the stance be changed to 'accommodative' from 'neutral'. End
Reported by Kabir Sharma
Edited by Tanima Banerjee
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