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RBI/2018-19/170
DNBR (PD) CC.No.098/03.10.001/2018-19
April
16, 2019
To
All Systemically Important
Non-Deposit taking Non-Banking Financial Company – Investment and Credit
Companies
Madam/Sir,
Licensing as Authorised Dealer-
Category II
A large segment of population is
increasingly getting connected with forex transactions on individual
accounts. In order 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, it has been decided that Systemically
Important Non-Deposit taking Investment and Credit Companies shall be
eligible for Authorized Dealer- Category II (AD- Cat II) licence, subject
to meeting the following conditions:
i.
NBFCs
offering such services shall have a ‘minimum investment grade rating’.
ii.
NBFCs
offering such services shall 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, shall be put in place for such services.
2. The eligible NBFCs desirous
of undertaking AD-Cat II activities shall approach the Reserve Bank of
India, Foreign Exchange Department, Central Office, Mumbai for the AD-Cat
II licence.
3. Master
Direction - Non-Banking Financial Company - Systemically Important
Non-Deposit taking Company and Deposit taking Company (Reserve Bank)
Directions, 2016 has been modified accordingly.
Yours faithfully,
(Manoranjan Mishra)
Chief General Manager
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