Money changing authorisation under FEMA: Reserve Bank consolidates licensing, franchisee controls, and foreign exchange transaction compliance Money changing business may be undertaken only by persons authorised by the Reserve Bank under the Foreign Exchange Management Act, 1999, and unauthorised activity is liable to penalty under the Act. The Master Direction consolidates the framework governing full fledged money changers, non-bank authorised dealers Category II and related foreign exchange transactions, subject also to permissions required under any other law. The Reserve Bank may issue further directions through circulars and amend the Master Direction accordingly.