BANKING AFFAIRS

Detailed explanation-1: -Who are authorized by the Reserve Bank to sell foreign exchange for travel purposes? Ans. Foreign exchange can be purchased from any authorised person, such as an AD Category-I bank and AD Category II. Full-Fledged Money Changers (FFMCs) are also permitted to release exchange for business and private visits.

Detailed explanation-2: -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-3: -In terms of Section 10(1) of the FEMA, 1999 Reserve Bank is empowered to authorise any person to be known as authorised person to deal in foreign exchange as an authorised dealer or money changer.

Detailed explanation-4: -Authorised dealer-Category I All the nationalised banks, leading non-nationalised banks as well as foreign banks are chosen as authorised dealers category I to deal in foreign exchange. They may deal in other transactions in foreign exchange such as bill of exchange, cheques, letters of credit, deposits etc.