Restricted Money Changing authorisation expands agent networks while mandating due diligence, reporting, inspections and AML/KYC compliance. AD Cat I banks, AD Cat II and FFMCs may appoint agents/franchisees to carry on Restricted Money Changing (conversion of foreign currency notes, coins and travellers' cheques into rupees). Agency agreements must ensure displayed exchange rates align with the franchiser's branch rates, surrender of collections within seven days, maintenance of transaction records, and at least annual on site inspections. Initial franchiser arrangements require Reserve Bank regional approval with due diligence declarations; subsequent agreements are reported post facto. Franchisers must train agents, establish regular reporting, and enforce strict compliance with RBI AML/KYC guidelines.