The framework for licensing of Authorised Persons (APs) under FEMA, 1999 was last reviewed in March 2006. Keeping in view the progressive liberalisation under FEMA, increasing integration of the Indian economy with the global economy, digitisation of payment systems, evolving institutional structure, etc. over the last two decades, it has been decided to rationalise and simplify the licensing framework for APs. The review aims to meet the emerging requirements of the rapidly growing Indian economy, achieve operational efficiency in the delivery of foreign exchange facilities to common persons, tourists, and businesses, while maintaining appropriate checks and balances.

As announced in the Statement on Developmental and Regulatory Policies dated June 08, 2023, the draft Licensing Framework for Authorised Persons (APs) under FEMA is placed on the RBI website.

Comments/feedback on the draft framework are invited from all stakeholders and may be forwarded through email by January 31, 2024 with the subject line “Feedback on draft licensing framework for Authorised Persons under FEMA”.

(Yogesh Dayal)

Chief General Manager

Licensing framework for Authorised Persons updated to simplify AP licensing and seek stakeholder input. The draft Licensing Framework for Authorised Persons (APs) under the Foreign Exchange Management Act proposes simplification and rationalisation of licensing, operational norms, and supervisory mechanisms to align with liberalisation, digitisation of payments, and increased global integration, while preserving appropriate regulatory checks; stakeholder comments on the draft are invited.