The Reserve Bank of India (RBI) has officially rejected the proposal to allow non-banking entities to hold Authorised Dealer Category-I (AD Cat-I) licenses for forex dealing, asserting that this privilege will remain exclusive to banks. In its final notification regarding the Foreign Exchange Management (Authorised Persons) Regulations, the RBI stated, "Not accepted," while expanding the scope of transactions for Authorised Dealer Category-II (AD Cat-II) entities, which include non-banks. This decision clarifies that while non-banking financial companies can engage more in forex markets, they will not enjoy the same privileges as banks. The RBI has, however, accepted several industry suggestions to improve operational flexibility, such as removing prior approval requirements for opening new business locations and allowing forex correspondents to partner with multiple authorized dealers. Existing full-fledged money changers can continue operations if they meet a ₹10 crore (approximately $1.2 million USD) turnover threshold without needing to transition to AD Cat-II. Nonetheless, the RBI upheld the ₹50 crore (roughly $6 million USD) turnover and ₹10 crore net worth criteria for AD Cat-II licenses to ensure only serious players participate. Other proposals, including expanding FFMCs' activities and allowing sub-agents for forex correspondents, were also declined. The RBI's new framework aims to enhance governance while gradually widening access to the forex market.