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RBI Overhauls Authorised Person Rules for Forex Services

Current · Source: Reserve Bank of India · RBI/2026-27/78 · issued 06 May 2026 · ~2 min read
Quick answerRBI has issued new Foreign Exchange Management (Authorised Persons) Regulations, 2026, replacing the old framework to rationalise forex service delivery and ease compliance. All authorised persons must follow the new regulations, which also amend existing master directions and supersede 11 older circulars.
The rule, in the simplest words
How it plays out — a real example

A forex & trade-finance officer in Indore, Priya, is helping a customer who wants to send money abroad. She checks her bank's new compliance manual, which now follows the FEMA 401/2026-RB rule. She no longer looks at the old 2015 circular she used before, and she processes the transaction faster because the new rule has simpler steps. Priya feels relieved that the paperwork is lighter and the customer gets their service quickly.

What changed

RBI has notified the Foreign Exchange Management (Authorised Persons) Regulations, 2026 via Notification No. FEMA 401/2026-RB dated April 30, 2026, published on May 6, 2026. This replaces the earlier authorisation framework under FEMA, 1999, with the goal of rationalising forex service delivery and reducing compliance burden. Consequently, instructions in Master Directions on Money Changing Activities and Other Remittance Facilities are amended, and 11 A.P. (DIR Series) Circulars from 2000 to 2015 are superseded.

What it means for you

Banks and other authorised persons must now align their forex operations with the updated regulations, which aim to streamline processes and reduce paperwork. The supersession of older circulars means legacy compliance references are no longer valid, requiring a review of internal policies. This could lower operational costs and improve customer turnaround for forex services, but initial adaptation may need training and system updates.

What you must do

Who it affects

All authorised persons (banks, money changers, etc.) under FEMA, Compliance and forex operations teams in banks, Customers using foreign exchange services

❓ Common questions

What is the effective date of the new Authorised Persons Regulations?

The regulations were notified on April 30, 2026, and published in the Official Gazette on May 6, 2026. Compliance is required from the date of notification.

Which older circulars are superseded by this circular?

Eleven A.P. (DIR Series) Circulars issued between 2000 and 2015 are superseded, including those dated November 16, 2000, November 13, 2001, March 6, 2006, and others listed in Annex II of the circular.

Do I need to re-apply for authorisation under the new regulations?

The circular does not mention re-application; existing authorised persons must comply with the new regulations as applicable. Check the full notification for specific transition provisions.

📜 Read the original circular — full text as issued by RBI
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(DIR Series) Circular No. 09 May 06, 2026 All Authorised Persons, Madam / Sir, Issuance of Foreign Exchange Management (Authorised Persons) Regulations, 2026 The Reserve Bank has reviewed the existing framework for authorisation of any person as an Authorised Person under the Foreign Exchange Management Act, 1999, with the objective to rationalise the framework to improve delivery of foreign exchange services as well as easing compliance requirements. Accordingly, the Foreign Exchange Management (Authorised Persons) Regulations, 2026 has been notified vide Notification No. FEMA 401/2026-RB dated April 30, 2026 (published in the Official Gazette on May 06, 2026). All authorised persons shall comply with aforementioned regulations as applicable to them. 2. Upon issuance of the aforementioned regulations, instructions, as per Annex I , contained in Master Directions – Money Changing Activities and Master Direction – Other Remittance Facilities are being amended. Further, the A.P. (DIR Series) Circulars as per the Annex II are being superseded. 3. These directions are being issued under Section 10(4) and Section 11 of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. Yours Sincerely, (N Senthil Kumar) Chief General Manager Annex II List of A.P. (DIR Series) Circulars superseded S.N. A.P. (DIR Series) Circular Date 1. A.P. (DIR Series) Circular No. 20 November 16, 2000 2. A.P. (DIR Series) Circular No. 11 November 13, 2001 3. A.P. (DIR Series) Circular No. 25 March 06, 2006 4. A.P. (DIR Series) Circular No. 40 December 10, 2008 5. A.P. (DIR Series) Circular No. 61 May 16, 2011 6. A.P. (DIR Series) Circular No. 41 November 01, 2011 7. A.P. (DIR Series) Circular No. 60 December 22, 2011 8. A.P. (DIR Series) Circular No. 71 January 30, 2012 9. A.P. (DIR Series) Circular No. 33 September 24, 2012 10. A.P. (DIR Series) Circular No. 87 March 25, 2015 11. A.P. (DIR Series) Circular No. 12 September 10, 2015 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2026-27/78 · issued 06 May 2026. The plain-English explanation above is BankPulse’s own independent summary.
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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All authorised persons (banks, money changers, etc.) under FEMA, Compliance and forex operations teams in banks, Customers using foreign exchange services), your first concrete step on “RBI Overhauls Authorised Person Rules for Forex Services” is: “Review the full text of FEMA 401/2026-RB and update internal compliance manuals accordingly.” (RBI issued this 06 May 2026).

  1. Circular: RBI/2026-27/78 -- RBI Overhauls Authorised Person Rules for Forex Services
  2. Issued: 06 May 2026
  3. Action required: Review the full text of FEMA 401/2026-RB and update internal compliance manuals accordingly.
  4. Action required: Amend your forex service procedures to reflect changes in Master Directions on Money Changing and Other Remittance Facilities.
  5. Action required: Remove references to the 11 superseded A.P. (DIR Series) Circulars from your compliance checklists and training materials.
  6. Action required: Train staff handling forex transactions on the new regulatory requirements and streamlined processes.
  7. Action required: Ensure all authorised person licences and reporting mechanisms are updated per the 2026 regulations.
  8. Owner: ____________ Target date: ____________
  9. Board/committee approval needed? Y / N
  10. 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.

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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=13445&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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