In Foreign Exchange Management Act, 1999 (“FEMA”) most of the roles and responsibilities are assigned to Authorised Dealers(“AD”). These Authorised Dealers play a huge role under FEMA. They are entrusted with various duties and important roles that contribute to the safer and better implementation of the rules laid down under the Act. In this article you will get an elaborate insight about Authorised Dealer and their various roles and responsibilities:
1. What is the meaning of “Authorised Person”
- As per Section 2(c) of FEMA, "Authorised person" means an authorized dealer, money changer, offshore banking unit, or any other person which is authorized under Section 10(1) of FEMA to deal in foreign exchange or foreign securities.
- As per Section 10(1) of FEMA, the Reserve Bank of India (“RBI”), on an application made to it, may authorize any person to deal in foreign exchange or in foreign securities.
- “Authorised Dealer” means a person authorized as an authorized dealer under Section 10(1) of the FEMA Act. RBI can authorize banking as well as non-banking entities as authorized dealers.
2. What are the roles and responsibilities of the “Authorised Person” notified under FEMA
- As perSection 10 of FEMA, an authorized person shall comply with all the directions or orders of the RBI while dealing in foreign exchange or foreign security.
- An authorized person shall not engage in any transaction involving any foreign exchange or foreign security which is not in conformity with the terms of his authorization except with the prior permission of the Reserve Bank.
- In case of undertaking any transaction in foreign exchange on behalf of any person, an authorized person shall ask such person to make a declaration and provide information to ensure that the transaction does not contravene any provisions of FEMA.
- If such a person fails to provide such information then the authorized person shall refuse in writing to undertake the transaction. Further, where such contravention or evasion is contemplated by the person then the authorized person shall report the matter to the RBI.
3. What are the different types of Authorised Dealers (AD) appointed by RBI
With a view to providing adequate foreign exchange facilities to common persons and ensuring efficient customer service through competition, RBI currently issues authorization under Section 10(1) of FEMA to the following four categories of Authorised Dealers:
3.1 Authorized Dealers Category – I (ADs – I)
Only banks are authorized as under Category-1. According to the RBI's most recent circular, there are around 110 firms that qualify for the Authorized Dealers category - I. It contains all types of commercial banks functioning in India, including nationalized, scheduled, private, and foreign commercial banks. These segments of banks are allowed to deal in all types of foreign exchange transactions related to current and capital account transactions according to the norms and procedures laid down by RBI.
3.2 Authorized Dealers Category – II (ADs –II)
RBI authorizes selected entities under Category II and these entities are permitted to carry out specific activities. AD Category II are permitted to carry out:
- specified non-trade-related current account transactions,
- all such activities which are permitted to Full Fledged Money Changers and
- any other activity as decided by the Reserve Bank.
Entities which are generally authorized under Category II are Upgraded FFMCs, Coop Banks, Regional Rural Banks (RRBs), and others.
3.3 Authorized Dealers Category -III (ADs –II)
RBI authorizes Financial and other institutions as Authorised Dealers Category-III to carry out specific foreign exchange transactions incidental to their business/activities. The third category of authorized dealers operates with the goal of promoting international trade by providing them with enough foreign currency availability in accordance with the provisions of Section 10 of the FEMA Act 1999. Financial institutions such as IFCI, SIDBI EXIM Bank, and numerous Factor Agencies are among the prominent players.
3.4 Full-Fledged money Changers (FFMCs)
It is a novel component of Indian foreign exchange market regulation. Under this category, RBI selects registered companies as Full Fledge Money Changers to undertake the purchase and sale of foreign exchange for specified purposes only. It might have been any financial entity other than commercial banks that met the RBI's standards and criteria. FFMCs are allowed to buy and sell foreign exchange from both residents and non-residents visiting India. The main objective of the enactment of FFMCs is to provide easy access to foreign exchange transactions to the common masses. Entities appointed as FFMCs are Dept. of Posts, Urban Co-op. Banks and Other FFMCs.
4. Roles and Duties of Authorised Dealers
As per RBI/FED/2015-16/17 FED Master Direction No.3/2015-16 dated 1st January 2016, the following operational instructions are provided to authorized dealers:
4.1 Purchase of Foreign Currency From the Public
- 授权人员可自由向居民及非居民购买外币现钞、硬币及旅行支票。若外币是通过填写《货币申报表》（CDF）入境的，授权交易商（AD）应要求出示该申报表。
- 向居民客户和非居民客户购买外币的现金支付限额分别为每笔交易不超过 1,000 美元和 3,000 美元（或等值货币）。
- 可凭国际信用卡/借记卡向外国游客/访客出售印度卢比，并应及时通过正常银行渠道办理结算。
- 根据规定限额，向居民客户购买外币的付款方式可为现金、划线支票/汇票、存入印度卢比借记卡或通过银行渠道进行电子转账。
4.2 外汇销售
授权交易商负责为以下用途办理外汇销售：
- 私人访问：授权人员可在财政年度内，向印度居民出售不超过规定上限的外汇，用于前往国外（尼泊尔和不丹除外）进行一次或多次私人访问。
- 商务访问：可向印度居民出售外汇，用于商务差旅、参加会议或专业培训，或支付出国就医/检查的患者及其陪同人员的维护费用，金额不超过《2000年外汇管理法（经常账户交易）规则》附表三规定的限额。
- 外汇预付卡：在符合“了解您的客户”（KYC）、反洗钱（AML）及打击资助恐怖主义（CFT）要求的前提下，二级授权交易商可向出国进行私人/商务访问的居民发行外汇预付卡。但外汇预付卡的结算应通过一级授权交易商银行进行。
4.3 结汇证明的签发
在向居民或非居民购买外币现钞、硬币及旅行支票时，如对方要求，授权人员可签发结汇证明。此类证明应使用货币兑换商的信笺抬头，加盖授权签字，并妥善保存记录。
4.4 从其他全牌照货币兑换商（FFMC）及授权交易商（AD）处购买
全牌照货币兑换商（FFMC）或非银行类二级授权交易商可从其他 FFMC 及授权交易商处购买在正常业务过程中提交的外币现钞、硬币及已兑现的旅行支票。此类购买的款项仅可通过划线支票、汇票、银行本票、支付令或通过银行渠道进行电子转账的方式支付。
4.5 印度货币回兑销售
非居民在离境时持有的未用完印度货币，在出示有效结汇证明的前提下，可由授权人员兑换为外币。
4.6 现金收据
授权人员应向购买外币的旅客出具使用其信笺抬头的现金收据。旅客在离境时，移民局可能会要求出示该收据。
4.7 汇率
授权人员可根据市场情况并参考当前市场汇率，办理外币现钞及旅行支票的相关交易。
4.8 外币余额
- 全牌照货币兑换商（FFMC）或非银行类二级授权交易商应将外币余额保持在合理水平，避免因投机货币波动而囤积闲置资金。
- 授权交易商与 FFMC 之间的交易应通过划线支票、汇票或银行渠道电子转账进行结算。在任何情况下均不得以现金方式结算。
4.9 外币余额补充
- 全牌照货币兑换商（FFMC）或非银行类二级授权交易商可从其他 FFMC 及授权交易商处获取其正常业务所需的外币现钞。此类采购款项可通过划线支票、汇票或银行渠道电子转账以卢比支付。
- 若 FFMC 或非银行类二级授权交易商无法通过上述方式补充库存，可经由一级授权交易商向印度储备银行相关地区办公室申请进口外币许可。进口业务应通过申请时所经办的一级授权交易商进行。
4.10 剩余外币现钞/旅行支票的出口/处置
- FFMCs/non-bank ADs Category II may export surplus foreign currency notes/encashed travelers' cheques to an overseas bank through designated AD Category - I in foreign exchange for the realization of their value through the latter.
- FFMCs may also export surplus foreign currency to private money changers abroad subject to the condition that either the realizable value is credited in advance to the AD Category – I bank Nostro account or a guarantee is issued by an international bank of repute covering the full value of the foreign currency notes/coins to be exported.
