Non-banking finance company Indel Money, which is in the gold loan business, on Tuesday said that it has received an Authorized Dealer (AD) Category-II license from the Reserve Bank of India (RBI) to start foreign exchange business such as conversion of foreign currency bank notes, travel money cards and in undertaking outward remittances which fall under the ambit of license.
The objective of issuing such licenses is to provide easier foreign exchange conversion facilities for travelers and tourists, including Non-Resident Indians (NRI), by enlarging the network of money changing facilities in the country.
RBI issues authorization under Section 10(1) of the Foreign Exchange Management Act (FEMA) to select entities as AD Category-II to carry out specified non-trade related current account transactions, all the activities permitted to the Full-Fledged Money Changers (FFMC) and any other activity as decided by the central bank.
On this development, Umesh Mohanan ED and CEO, Indel Money said: “It is a significant milestone in the company’s journey as we are the second systemically important non-deposit taking NBFC in the country to get such license. It also offers us an opportunity to explore the foreign exchange services segment, which has been consistently recording a remarkable growth especially in the post-Covid era.”
The AD Category-II foreign exchange license is superior to the ordinary money exchange license as it offers more features like facilitating outward (international) remittances towards non-trade current account transactions apart from transacting in multi-currency travel money cards and foreign currency banknotes.
