AU Small Finance Bank Gets Nod For Forex Dealing
The Reserve Bank of India (RBI) has given AU Small Finance Bank an Authorised Dealer-I (AD-I) licence, the small financier announced in a report to the market on Wednesday.
"We wish to inform you that the Reserve Bank of India vide its letter dated 19th April, 2023 has granted licence to act as authorised dealer Category-I (AD-I) under Section 10 of FEMA, 1999 to deal in foreign exchange, subject to compliance with applicable regulations in this regard," the filing stated.
With the licence, AU Small Finance Bank will be allowed to process both inbound and outbound remittances and open a variety of foreign currency-related products to cater to the importer-exporter market.
Recently, the central bank had approved the re-appointment of Sanjay Agarwal as managing director & CEO of the bank for three years. The re-appointment is valid with effect from April 19 till April 18, 2026, AU Small Finance Bank said in a statement. Besides this, it said the regulator has also cleared the re-appointment of Uttam Tibrewal as the whole-time director for a period of three years.
According to analysts, obtaining an AD-I licence is essential for the bank's future prospects. Equitas Small Finance Bank was also given an authorised dealer-I licence by the national bank on Wednesday.
