BANKING AFFAIRS

Detailed explanation-1: -In terms of Section 10 (1) of the Foreign Exchange Management Act, 1999, the Reserve Bank, on an application, may authorise any person to be known as an authorised person, to deal in foreign exchange as an authorised dealer, money changer or off-shore banking unit or in any other manner as it deems fit.

Detailed explanation-2: -The FEDAI determines many of the rules that oversee the day-to-day forex transactions in India. In addition to creating rules, FEDAI assists member banks by acting as an advisor, training personnel about Foreign Exchange Business, and accrediting foreign exchange brokers.

Detailed explanation-3: -FEDAI represents member banks while liaising with RBI and other organizations like Fixed Income Money Market and Derivatives Association (FIMMDA), the Forex Association of India, International Chamber of Commerce, and other world bodies related to foreign trade and business.

Detailed explanation-4: -Foreign Exchange Dealer’s Association of India (FEDAI) was set up in 1958 as an Association of banks dealing in foreign exchange in India (typically called Authorised Dealers-ADs) as a self regulatory body and is incorporated under Section 25 of The Companies Act, 1956.