The Reserve Bank of India (RBI) has decided to halt fresh applications for full-fledged money changers (FFMCs) as part of new regulations aimed at enhancing the foreign exchange management framework. The RBI has directed existing authorised persons to phase out franchisee arrangements within two years, transitioning to the newly formalized Forex Correspondent (FxC) framework. This move is intended to rationalize the authorisation process and ensure proper checks and balances in foreign exchange transactions. The regulations introduce a three-tier structure for authorised persons, categorizing them into Authorised Dealer (AD) Categories I, II, and III, with specific eligibility criteria. Companies seeking to operate as AD Category II must meet a minimum net worth of ₹10 crore (approximately $1.2 million USD), while AD Category III requires ₹2 crore (around $240,000 USD). Additionally, existing entities must comply with new net worth requirements to renew their authorizations. The RBI emphasized the importance of maintaining a robust regulatory framework to ensure compliance and protect public interest.