Muthoot FinCorp Limited has received a Perpetual Authorised Dealer Category-II (AD-II) Forex Licence from the Reserve Bank of India (RBI), enabling the company to offer a wider range of regulated foreign exchange services to retail customers, MSMEs, SMEs, corporates, travellers and its partner ecosystem.
The perpetual licence removes the requirement for periodic renewal, subject to continued compliance with RBI regulations. Muthoot FinCorp said the approval strengthens its long-term operational continuity and regulatory framework while supporting the expansion of its forex business across the country.
Under the licence, the company can offer foreign currency exchange, multi-currency forex cards, Liberalised Remittance Scheme (LRS) remittances, family maintenance remittances, trade remittances and forex business correspondent services as a principal agent.
The licence also allows Muthoot FinCorp to expand its authorised forex network by establishing additional branches in accordance with RBI guidelines. The company said this will help improve access to regulated forex services for retail customers, MSMEs, SMEs, corporates, students pursuing overseas education, business travellers, NRIs, partner institutions and individual customers.
Commenting on the development, Shaji Varghese, Chief Executive Officer of Muthoot FinCorp, said the licence will allow the company to offer a wider portfolio of regulated forex services, including trade and family maintenance remittances, through its nationwide network. He added that the company will continue investing in technology and distribution to provide secure, compliant and customer-focused forex solutions.
The approval follows the revision of the Foreign Exchange Management Act (FEMA) framework in May 2026, under which the RBI expanded the scope of eligible AD-II entities. The revised framework allows eligible AD-II entities to facilitate trade remittances of up to Rs. 25 lakh and family maintenance remittances.
The change has expanded the role of eligible non-bank entities in India’s foreign exchange ecosystem by allowing them to participate in certain trade and remittance services that were traditionally handled by banks and AD-I institutions.
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