The Reserve Bank of India (RBI) has implemented new regulations aimed at enhancing oversight in the money changing sector. Authorized dealers must now maintain an annual turnover of ₹10 crore (approximately $1.2 million USD) to continue operations. Additionally, any management changes involving over 50% ownership will require RBI approval. The guidelines emphasize the responsibility of principal authorized dealers—primarily banks—to ensure compliance with customer protection and anti-money laundering regulations. Existing franchise arrangements for money changers must be wound down within two years, while a new AD Category-III foreign exchange license has been introduced for businesses that require forex dealing as part of their operations. This license mandates a minimum net worth of ₹2 crore (approximately $240,000 USD). The RBI will have the authority to reject forex license applications that contain misleading information or do not meet eligibility criteria, reinforcing the accountability of the sector.