Friday 19 April 2019

NBFC - Systemically Important Non-Deposit taking - Investment and Credit Companies – eligible as Authorised Dealer


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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