What changed
RBI has notified the Foreign Exchange Management (Authorised Persons) Regulations, 2026 via Notification No. FEMA 401/2026-RB dated April 30, 2026, published on May 6, 2026. This replaces the earlier authorisation framework under FEMA, 1999, with the goal of rationalising forex service delivery and reducing compliance burden. Consequently, instructions in Master Directions on Money Changing Activities and Other Remittance Facilities are amended, and 11 A.P. (DIR Series) Circulars from 2000 to 2015 are superseded.
What it means for you
Banks and other authorised persons must now align their forex operations with the updated regulations, which aim to streamline processes and reduce paperwork. The supersession of older circulars means legacy compliance references are no longer valid, requiring a review of internal policies. This could lower operational costs and improve customer turnaround for forex services, but initial adaptation may need training and system updates.
What you must do
- Review the full text of FEMA 401/2026-RB and update internal compliance manuals accordingly.
- Amend your forex service procedures to reflect changes in Master Directions on Money Changing and Other Remittance Facilities.
- Remove references to the 11 superseded A.P. (DIR Series) Circulars from your compliance checklists and training materials.
- Train staff handling forex transactions on the new regulatory requirements and streamlined processes.
- Ensure all authorised person licences and reporting mechanisms are updated per the 2026 regulations.
Who it affects
All authorised persons (banks, money changers, etc.) under FEMA, Compliance and forex operations teams in banks, Customers using foreign exchange services
What is the effective date of the new Authorised Persons Regulations?
The regulations were notified on April 30, 2026, and published in the Official Gazette on May 6, 2026. Compliance is required from the date of notification.
Which older circulars are superseded by this circular?
Eleven A.P. (DIR Series) Circulars issued between 2000 and 2015 are superseded, including those dated November 16, 2000, November 13, 2001, March 6, 2006, and others listed in Annex II of the circular.
Do I need to re-apply for authorisation under the new regulations?
The circular does not mention re-application; existing authorised persons must comply with the new regulations as applicable. Check the full notification for specific transition provisions.