With the progressive liberalisation in foreign exchange related transactions common person can now undertake a variety of current account transactions without approaching the Reserve Bank of India. A large segment of population is increasingly getting connected with forex transactions of an expanding nature on individual accounts.

Taking into account the day-to-day needs of (a) common persons for undertaking various transactions, (b) tourists for better encashment services and (c) requests received from existing Full-fledged Money Changer (FFMCs) there is a felt need for widening and rationalising the intermediate tier of authorised persons which is licensed to undertake foreign exchange transactions to meet the day-to-day needs. These would cater to tourists for encashment and common persons for release of foreign exchange for medical treatment, education, employment, travel related transactions and in general a large variety of current account transactions that are not trade transactions. With a view to liberalising and rationalising the scope of activities currently undertaken by the authorised persons, therefore, an internal group was constituted to study the related issues and make recommendations keeping in view the need for enhanced as well as wider access and accompanying safeguards, especially reporting requirements.