Systemically
Important Non-Deposit taking Investment and Credit Companies are now eligible
for Authorized Dealer- Category II (AD- Cat II) license. However, NBFCs
offering such services would be eligible subject to meeting the following
conditions:
- Minimum investment grade rating.
- Should have in place a board-approved policy on:
- managing the risks, including currency risk, if any, and ;
- handling customer grievances arising out of such activities;
- A monitoring mechanism, at least at monthly intervals, shall be put in place for such services.
The
move by Reserve Bank of India (RBI) is taken 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 as a large segment
of population is increasingly getting connected with forex transactions on
individual accounts.
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 license.
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