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Introduction - Authorised Person under FEMA Act,1999 - FEMA Ready Reckoner - FEMAExtract Authorised Person Introduction RBI cannot do all transactions in foreign exchange itself. hence, RBI delegates its powers to the 'Authorised Persons with suitable guidelines , to deal in foreign exchange and foreign securities. The RBI has power to appoint person under section 10 of the FEMA Act, 1999. Section 10 empowers the Reserve Bank to authorises persons to deal in foreign exchange or in Foreign securities. The authorisation can also be granted for dealing in foreign exchange. The Reserve Bank may specify the conditions in the authorisation and may also revoke the same in public interest in the case of any contravention of the provisions of the act or failure to comply with the conditions in the authorisation. RBI Currently issues authorisation to following categories:- Authorised Dealers Category-I Meaning :- Authorised Dealers (AD) Category-I means entities which are authorised by RBI to carry out all permissible current and capital account transaction as per directions issued from time to time. [Section I para 2.3 of RBI FED Master Direction No. 03/2015-16 dated 01-01-2016 ] Entities :- (i) Commercial Banks (ii) State Co-op Banks (iii) Urban Co-op Banks. [ RBI A.P. (DIR Series) Circular No. 25 date 06/03/2006 ] Major Activities:- All current and capital account transactions according to RBI directions issued from time-to-time. [ RBI A.P. (DIR Series) Circular No. 25 date 06/03/2006 ] Authorised Dealers Category- II Meaning :- Authorised Dealer (AD) Category II means entities which are authorised by the Reserve Bank to carry out specified non-trade related current account transactions, all the activities permitted to Full Fledged Money Changers and any other activity as decided by the Reserve Bank, and shall include; (i) Upgraded FFMCs; (ii) Select Regional Rural Banks (RRBs); (iii) Select Urban Cooperative Banks (UCBs); and (iv) Other entities. [Section I para 2.4 of RBI FED Master Direction No. 03/2015-16 dated 01-01-2016 ] Entities :- (i) Select Financial and other Institutions. [ RBI A.P. (DIR Series) Circular No. 25 date 06/03/2006 ] Major Activities:- Specified non-trade related current account transactions as at paragraph 3 below as also all the activities permitted to Full Fledged Money Changers. Any other activity as decided by the Reserve Bank. [ RBI A.P. (DIR Series) Circular No. 25 date 06/03/2006 ] Authorised Dealers Category- III Meaning :- Authorised Dealer (AD) Category III means entities which are authorised by the Reserve Bank to carry out specific foreign exchange transactions incidental to their business / activities. [Section I para 2.5 of RBI FED Master Direction No. 03/2015-16 dated 01-01-2016 ] Entities :- (i) Upgraded FFMCs (ii) Co-op. Banks (iii) Regional Rural Banks (RRBs) (iv) Others. [ RBI A.P. (DIR Series) Circular No. 25 date 06/03/2006 ] Major Activities:- Transactions incidental to the foreign exchange activities undertaken by these institutions. [ RBI A.P. (DIR Series) Circular No. 25 date 06/03/2006 ] Full Fledged Money Changers (FFMCs) Meaning :- Authorised Dealer (AD) Category III means entities which are authorised by the Reserve Bank to carry out specific foreign exchange transactions incidental to their business / activities. [Section I para 2.5 of RBI FED Master Direction No. 03/2015-16 dated 01-01-2016 ] Entities :- (i) Dept. of Posts, (ii) Urban Co-op. Banks (iii) Other FFMCs. [ RBI A.P. (DIR Series) Circular No. 25 date 06/03/2006 ] Major Activities:- Purchase of foreign exchange and sale for private and business visits abroad. [ RBI A.P. (DIR Series) Circular No. 25 date 06/03/2006 ]
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