The regulations provide a revised framework governing authorisation, eligibility, permitted activities, renewal, compliance conditions, and oversight of authorised persons dealing in foreign exchange. These classify authorised persons into AD Category-I, AD Category-II, AD Category-III, and Full Fledged Money Changers (FFMCs). Fresh authorisation applications are required to be submitted through the PRAVAAH portal.
— The regulations permit AD Category-I entities to undertake all permissible current and capital account transactions, while AD Category-II entities may undertake specified non-trade current account transactions and foreign trade transactions up to Rs 25 lakh per transaction. FFMCs may continue money changing and MTSS- related activities. The regulations create a detailed Forex Correspondent Scheme allowing AD Category-I and II entities to appoint Forex Correspondents under a principal-agent model for money changing activities.