RBI tells money changers to avoid build-up of idle foreign currency balances

economictimes.indiatimes.com:

Reserve Bank of India has directed full-fledged money changers to ensure that the value of foreign currency notes sold by them to the public should not be less than 75% of the value of such notes bought from other money changers on a quarterly basis.

The RBI’s directions are effective from July 1, 2024, the central bank said on Monday.

The step has been taken to ensure that balances in foreign currencies maintained by full-fledged money changers are at reasonable levels and to avoid a build-up of idle balances, the central bank said.

“Data of such sale and purchase should be maintained and made available for audit / inspection,” the RBI said. Central bank norms allow full fledged money changers to obtain their normal business requirements of foreign currency notes from other full fledged money changers and authorised dealers in India.

The banking regulator has also instructed full fledged money changers to submit their annual audited balance sheets to the concerned regional office of the RBI. This is to be done along with a certificate from statutory auditors regarding the net-owned funds as on the date of the balance sheet of the full-fledged money changer latest by October 31 of the year concerned, the RBI said. END