Forex Correspondent governance requires a Board-approved policy covering eligibility, due diligence, reporting, customer service, and grievance redressal. The principal must formulate a Board-approved internal policy for engaging Forex Correspondents. The policy should cover the types of entities to be appointed, fit and proper criteria, activities to be undertaken through them, net worth requirements, due diligence, systems and controls, transaction reporting, charges, customer service, and grievance redressal.