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Indel Money Secures RBI License for Forex Operations

Oct 4, 2023

By: BlinkX Research Team

Indel Money, a prominent non-banking financial company (NBFC) specializing in gold loans, has been granted an Authorised Dealer (AD) Category-II license by the Reserve Bank of India (RBI) to foray into the foreign exchange business. This accreditation empowers Indel Money to conduct a range of foreign exchange activities, including the conversion of foreign currency bank notes, issuance of travel money cards, and facilitating outward remittances, all covered under the license.

The prime objective behind this issuance is to streamline foreign exchange services for travelers and tourists, including non-resident individuals, by broadening the network of money-changing facilities nationwide.

Under Section 10(1) of the Foreign Exchange Management Act (FEMA), the RBI designates specific entities as AD Category-II, allowing them to conduct specified non-trade related current account transactions. This encompasses all activities permitted for Full-Fledged Money Changers (FFMCs) and any additional activities determined by the central bank.

Umesh Mohanan, Executive Director and CEO of Indel Money, expressed, "This marks a significant milestone in the company's journey, as we become the second Systemically Important non-deposit taking NBFC in the country to secure such a license. It also presents a golden opportunity to explore the foreign exchange services segment, which has been consistently demonstrating remarkable growth, especially in the post-Covid era."

The AD Category-II foreign exchange license offers advanced features compared to a standard money exchange license. It facilitates outward (international) remittances for non-trade current account transactions, in addition to transactions involving multi-currency travel money cards and foreign currency banknotes.