Current · Source: Reserve Bank of India · RBI/2011-12/216 · issued 12 Oct 2011 · ~2 min read
Quick answerRBI has amended the Memorandum of Instructions for money changing activities. Urban Cooperative Banks can now apply for Authorised Dealer categories, and Full-Fledged Money Changers can offer reconversion of up to Rs 50,000 to foreign tourists against ATM receipts.
The rule, in the simplest words
Urban Cooperative Banks (banks owned by their members) can now ask for permission to be a big money changer (Authorised Dealer Category-I or II) if they follow the rules.
Full-Fledged Money Changers (shops that exchange money) can now give back up to Rs 50,000 in Indian rupees to foreign tourists who show an ATM receipt (a slip from a cash machine).
Foreign tourists must show their passport, visa, a confirmed flight ticket within 7 days, and the original ATM slip to get their money back.
The old rule that stopped Urban Cooperative Banks from getting new money-changer licenses is gone.
How it plays out — a real example
Priya, a forex & trade-finance officer in Indore, updates her bank's policy after the RBI rule change. She tells her team that Urban Cooperative Banks can now apply to become Authorised Dealers, so her bank might offer foreign exchange services. She also trains staff to accept ATM receipts from foreign tourists and give back up to Rs 50,000 in rupees, checking their passport and ticket first.
What changed
The earlier restriction that no fresh authorization would be issued to Urban Cooperative Banks (UCBs) as Full-Fledged Money Changers (FFMCs) has been removed. Instead, UCBs meeting eligibility norms can now be considered for Authorised Dealer Category-I or Category-II authorization. Additionally, the facility for reconversion of Indian currency up to Rs 50,000 against ATM receipts for foreign tourists has been extended to Full-Fledged Money Changers (FFMCs), whereas earlier it was limited to Authorised Dealers Category-I and Category-II.
What it means for you
This circular expands the scope for Urban Cooperative Banks by allowing them to apply for higher-tier foreign exchange authorizations, potentially increasing their role in forex markets. For FFMCs, the ability to offer reconversion services against ATM receipts will enhance customer convenience for foreign tourists, aligning them with ADs. Banks and lenders must update their internal guidelines to reflect these changes and ensure compliance with the revised memorandum.
What you must do
Update internal policies to reflect that UCBs can now apply for AD Category-I or II authorization if they meet eligibility norms.
Extend reconversion facility against ATM receipts up to Rs 50,000 to foreign tourists through FFMCs, ensuring proper document verification.
Train staff on the revised guidelines, especially for verifying passport, visa, confirmed departure ticket within 7 days, and original ATM slip.
Communicate these changes to all concerned branches and authorized persons handling foreign exchange transactions.
Who it affects
Urban Cooperative Banks (UCBs), Full-Fledged Money Changers (FFMCs), Authorised Dealers Category-I and Category-II, Foreign tourists (non-NRIs) using ATM receipts for reconversion
❓ Common questions
Can Urban Cooperative Banks now get fresh authorization as FFMCs?
No, the earlier note barring fresh FFMC authorization for UCBs has been replaced. Now, UCBs fulfilling eligibility norms can be considered for Authorised Dealer Category-I or Category-II authorization instead.
What documents are needed for reconversion of Indian rupees against ATM receipts?
Foreign tourists must provide a valid passport and visa, a confirmed ticket for departure within 7 days, and the original ATM slip verified with the original debit/credit card. The limit is Rs 50,000 per tourist.
Does this circular affect any other instructions from the 2009 circular?
No, all other instructions in the A.P. (DIR Series) Circular No. 57 dated March 9, 2009, remain unchanged. Only the specified parts (Part A and Part E) have been amended.
📜 Read the original circular — full text as issued by RBI
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/216 · issued 12 Oct 2011. The plain-English explanation above is BankPulse’s own independent summary.
Communicate these changes to all concerned branches and authorized persons handling foreign exchange transactions.
📜 Compliance
Update internal policies to reflect that UCBs can now apply for AD Category-I or II authorization if they meet eligibility norms.
Extend reconversion facility against ATM receipts up to Rs 50,000 to foreign tourists through FFMCs, ensuring proper document verification.
Train staff on the revised guidelines, especially for verifying passport, visa, confirmed departure ticket within 7 days, and original ATM slip.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (Urban Cooperative Banks (UCBs), Full-Fledged Money Changers (FFMCs), Authorised Dealers Category-I and Category-II, Foreign tourists (non-NRIs) using ATM receipts for reconversion), your first concrete step on “RBI eases money changing rules for FFMCs and UCBs” is: “Update internal policies to reflect that UCBs can now apply for AD Category-I or II authorization if they meet eligibility norms.” (RBI issued this 12 Oct 2011).
Circular: RBI/2011-12/216 -- RBI eases money changing rules for FFMCs and UCBs
Issued: 12 Oct 2011
Action required: Update internal policies to reflect that UCBs can now apply for AD Category-I or II authorization if they meet eligibility norms.
Action required: Extend reconversion facility against ATM receipts up to Rs 50,000 to foreign tourists through FFMCs, ensuring proper document verification.
Action required: Train staff on the revised guidelines, especially for verifying passport, visa, confirmed departure ticket within 7 days, and original ATM slip.
Action required: Communicate these changes to all concerned branches and authorized persons handling foreign exchange transactions.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6757&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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