AU Small Finance Bank (AU SFB) recently in a stock exchange filling announced that it has received the Authorized Dealer Category-I (AD Cat-I) license from Reserve Bank of India (RBI). This license will allow the bank to undertake foreign currency (FCY) transactions and operate in the foreign exchange market, thereby making the Bank complete in terms of its products and services offerings to its customers.
It will now be able to offer a full range of foreign exchange services, including currency exchange, remittances, forex cards, and cross-border trade services including import and export credit solutions like export finance, trade receivables discounting, Buyers credit, Suppliers credit etc. as well as a range of non-fund based products like Letter of Credit, Bank Guarantees, Letter of undertakings etc. thereby catering to every need of its customers.
The AD-I license will open up opportunity for the Bank to on-board new category of customers involved in exports/imports and whom the Bank couldn’t serve till now. Additionally, the bank’s existing customers engaged in cross-border trade will immensely benefit from the added convenience and flexibility of the new services, and will be able to undertake these transactions through various digital and physical channels of the Bank including its industry-leading video banking platform and AU 0101 app.
Sanjay Agarwal, MD & CEO of AU Small Finance Bank, said, “We are very happy and humbled to receive this license as it will allow us to expand our range of products & services and better serve our customers’ evolving needs, particularly those engaged in cross-border trade and markets. This license couldn’t have come at a more opportune time than today as we celebrate 28 years of our company’s foundation and 6th anniversary of our Banking journey.”
Agarwal added, “This license will not only immensely benefit our existing customers but will allow the Bank to acquire a new segment of Small and Medium Enterprise (SME) customers who are engaged in export or import related businesses offering them complete trade and forex services including treasury and hedging related solutions. Further, the Bank will be able to expand the range of services to its NRI customers including opening of NRE/NRO accounts, offering FCNR deposits and booking forward contracts and providing hedging solutions.”