RBI Grants Mufin Green Finance AD-II Licence

On 13 November 2026, the Reserve Bank of India (RBI), through its Foreign Exchange Department, granted Mufin Green Finance Limited an Authorised Dealer Category-II (AD-II) licence. The New Delhi-headquartered company is an RBI-licensed non-banking financial company listed on the NSE and BSE.

Permitted services and licence validity

The licence allows Mufin Green Finance to undertake permissible foreign exchange activities, including remittance services for medical treatment, education and family maintenance. It remains valid until revoked or surrendered by the company.

Regulatory context

The authorisation follows a May 2026 revision to the Foreign Exchange Management Act (FEMA) framework that enabled non-banking entities to receive AD-II licences for trade and family-maintenance remittances. The new services are expected to diversify Mufin Green Finance’s revenue through fee-based income and reduce its reliance on net interest income.

Important Facts for Exams

• Current and capital accounts: FEMA permits current-account transactions unless expressly prohibited, while capital-account transactions require express permission.
• Liberalised Remittance Scheme: FEMA’s Liberalised Remittance Scheme provides for easier outward remittances and is available to resident individuals, including minors and students.
• FEMA authorisation power: Section 10(1) of FEMA empowers the RBI to authorise persons to deal in foreign exchange as authorised dealers, money changers or otherwise.
• AD-I and AD-II scope: AD-I banks may handle all permissible current- and capital-account transactions, whereas AD-II entities receive narrower, specified authorisations under RBI directions.