RBI Recognises FEDAI as Self-Regulatory Organisation for Authorised Dealers

Current Context: On 14 January 2026, the Reserve Bank of India (RBI) officially recognised the Foreign Exchange Dealers’ Association of India (FEDAI) as a Self-Regulatory Organisation (SRO) for all Authorised Dealers in the foreign exchange market.

• FEDAI, established in 1958, has historically framed guidelines for inter-bank forex dealings and worked closely with RBI on reforms.
• This recognition comes under the Omnibus SRO Framework (2024), following FEDAI’s application and its proven role in setting conduct standards.
• The scope now extends to all Authorised Dealers (banks and FEMA-authorised entities), with FEDAI responsible for promoting best practices, ensuring ethical conduct, monitoring compliance, and fostering transparency.
• RBI has granted a one-year transition period (till Jan 2027) for FEDAI to align governance and extend membership to all categories of ADs.
• This move strengthens self-regulation, efficiency, and discipline in India’s forex market, enhancing transparency and stability.

Question:

Q.1 The Foreign Exchange Dealers’ Association of India has been recognised as a Self-Regulatory Organisation for which segment of the financial market?
a) Capital market intermediaries
b) Payment system operators
c) Foreign exchange market
d) Insurance intermediaries

Answer: c) The recognition applies specifically to the foreign exchange market, covering all entities authorised to deal in foreign exchange.