The RBI issued instructions on Money Changing Activities u/s ...

New instructions on Money Changing Activities issued by RBI. FFMCs/ADs Category-II must maintain balance in foreign currencies.

Circulars     FEMA

May 28, 2024

The RBI issued instructions on Money Changing Activities u/s 10(4) and 11(1) of the Foreign Exchange Management Act, 1999. FFMCs/non-bank ADs Category-II must maintain a 75% ratio between foreign currency notes sold and purchased quarterly starting July 1, 2024. They must submit annual audited balance sheets with NOF certification by Oct 31. Compliance is mandatory and non-compliance may lead to penalties. The FED Master Direction No.3 is being updated to reflect these changes.

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