meta_id 3131762

On May 6, 2026, the Reserve Bank of India (RBI) issued the Foreign Exchange Management (Authorised Persons) Regulations, 2026. The regulations rationalise the authorisation and renewal framework for authorised persons operating in India's foreign exchange market and extend the principal-agent model for delivery of foreign exchange facilities while maintaining appropriate checks and balances. The RBI developed the regulations following a consultation period on a draft framework published on December 26, 2023. The central bank examined and incorporated feedback received from stakeholders during this consultation process. The RBI's responses to major comments received from stakeholders during the consultation are detailed in an annex accompanying the press release. The regulations represent a significant update to India's foreign exchange authorisation regime, streamlining processes for entities seeking to operate as authorised persons in the foreign exchange market. By extending the principal-agent model, the regulations aim to facilitate broader delivery of foreign exchange services across India's financial system while ensuring regulatory oversight and risk management remain in place. Authorised persons under these regulations include banks, non-bank financial institutions, and other entities permitted to conduct foreign exchange transactions on behalf of customers. The updated framework is intended to enhance efficiency in foreign exchange operations and provide clarity on authorisation requirements and renewal procedures for market participants. REFERENCES: Reserve Bank of India. "Issuance of Foreign Exchange Management (Authorised Persons) Regulations, 2026." Press Release, May 6, 2026. https://www.rbi.org.in