RBI allows small finance banks to become Authorised Dealer banks to deal in forex transactions
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- Last Updated on 10 August, 2022
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CIRCULAR NO. RBI/2022-23/104 DOR.LIC.REC.60/16.13.218/2022-23, Dated
With the objective of giving more flexibility to Small finance bank (SFB) to meet their customers’ foreign exchange business requirement, the RBI has decided that all the scheduled SFBs, after completion of at least two years of operations as Authorised Dealer Category-II, will be eligible for Authorised Dealer Category-I license, subject to compliance with the eligibility norms.
RBI directed that The eligible SFBs may approach Foreign Exchange Department, Central Office, Reserve Bank of India with their applications along with the supporting documents with regard to their eligibility and requisite documents as prescribed for grant of Authorised DealerCategory-I license.
Eligibility norms for Small Finance Banks for Authorised Dealer Category-I are as under:
(i) The bank should have completed at least two years of operations as Authorised Dealer Category-II.
(ii) The bank should have been included in the Second Schedule to RBI Act 1934.
(iii) It should have a minimum net worth of Rs. 500 crore.
(iv) Its CRAR should not be less than 15%.
(v) The net NPAs of the bank should not exceed 6%, during previous four quarters.
(vi) It should have made profit in the preceding two years.
(vii) It should not have defaulted in maintenance of CRR/ SLR during previous two years.
(viii) It should have sound internal control systems.(ix) It should not have any major regulatory and supervisory concerns.
Click Here To Read The Full Circular
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