Authorised Dealer Category 1 licence (AD 1 licence) by Reserve Bank of India (RBI) will enable the Bank to offer a range of foreign exchange products and services
Bengaluru, October 4, 2024: Ujjivan Small Finance Bank, a leading small finance bank has secured an AD 1 Licence from RBI to offer full-fledged bouquet of forex products and services.
With this licence, Ujjivan can now facilitate a comprehensive range of Forex Transactions (Buy/Sell/Borrow in Foreign Currencies) in the Foreign Exchange market to our wide range of customers operating from India and abroad covering various forex services under retail banking, MSME/Trade Finance and Treasury business. Under Retail Banking, the offerings will consist of remittances, taking deposits under FCNR/RFC, Forex Cards, currency exchanges and capital-based transactions like ECB, ODI, FDI etc. The licence will also enable us to offer international trade related activities like Exchange Earners Foreign Currency Accounts (EEFC), export-import finance including pre and post shipment funding, undertake trade related payments on behalf of customers, trade receivable discounting like bills discounting in FC, Letter of Credits (LC) and Bank Guarantees (BG) etc. Furthermore, the Bank can also tap Sub-FCRA accounts for TASC.
Commenting on the development, Mr. Sanjeev Nautiyal, Managing Director and Chief Executive Officer, Ujjivan SFB, said “We are delighted to receive this licence as it will allow us to expand our products and services offerings, especially in the area of foreign exchange, and international banking related transaction. The license empowers us to cater the evolving needs of our diverse customer base by simplifying cross-border transactions and remittances.”
The AD1 licence will enable Ujjivan to cater to tap into the new customer segments while extending these offering to the existing customers.
