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May 07, 2026
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No more RBI licences for FFMCs, bks to appoint agents
Licences for fullfledged money changers (FFMCs), long the high-street face of India's forex market handling travellers' currency trades, will no longer be issued as the RBI replaces them with a new class of intermediaries, forex correspondents, to be appointed by authorised dealers.
The new rules bar fresh franchisee tie-ups by FFMCs and force a two-year winddown of existing networks. Earlier, authorised dealers and FFMCs could appoint franchisees, limited to buying foreign currency from the public. RBI has now shifted to a principal-agent model via the Forex Correspondent Scheme. Under it, authorised dealers (largely banks) can appoint forex correspondents.
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