Who are Authorized Dealer (AD) Banks – Category I in India- A Complete List

What Are Authorized Dealer (AD) Banks?

Authorized Dealer (AD) Banks – Category I are commercial banks authorized by the Reserve Bank of India (RBI) to facilitate foreign exchange transactions. These banks play a crucial role in helping foreign businesses, NRIs, and Indian companies manage cross-border transactions while ensuring compliance with the Foreign Exchange Management Act (FEMA), 1999.

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Types of Authorized Dealer (AD) Banks

The RBI classifies authorized dealers into three categories:

Category I: Full-fledged commercial banks handling all types of foreign exchange transactions.

Category II: Select financial institutions (e.g., certain cooperative banks) with limited forex capabilities.

Category III: Specialized entities like Non-Banking Financial Companies (NBFCs) handling specific forex transactions.

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List of Major Authorized Dealer (AD) Banks – Category I in India

Public Sector Banks (Government-Owned)

1) State Bank of India (SBI)

2) Punjab National Bank (PNB)

3) Bank of Baroda (BoB)

4) Canara Bank

5) Union Bank of India

6) Indian Bank

7) Bank of India

8) UCO Bank

Private Sector Banks

9) HDFC Bank

10) ICICI Bank

11) Axis Bank

12) Kotak Mahindra Bank

13) IndusInd Bank

14) Yes Bank

15) Federal Bank

Foreign Banks Operating in India

16) Citibank N.A.

17) HSBC Bank

18) Standard Chartered Bank

19) Deutsche Bank

20) J.P. Morgan Chase Bank

21) Barclays Bank

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Role of AD Category I Banks in Foreign Business Setup

Foreign companies need an AD Category I Bank for:

✔ Submitting Form FNC to establish a Liaison Office (LO), Branch Office (BO), or Project Office (PO).

✔ Receiving Foreign Direct Investment (FDI) and managing remittances.

✔ Handling Export/Import Transactions and international trade payments.

✔ Ensuring FEMA & RBI Compliance, including regulatory reporting.

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How to Choose an AD Category I Bank?

When selecting an Authorized Dealer Bank, consider:

✅ Expertise in Foreign Business Transactions (e.g., SBI, ICICI, HDFC, Axis)

✅ Speed of Processing RBI Approvals for foreign offices

✅ International Network & Correspondent Banking Capabilities

✅ Comprehensive Corporate Banking Services for efficient fund management

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Conclusion

Authorized Dealer (AD) Banks – Category I play a crucial role in facilitating foreign exchange transactions, foreign business expansion, and regulatory compliance in India. Choosing the right AD Bank can streamline the process of setting up a foreign entity, managing international transactions, and ensuring FEMA & RBI compliance.

📢 Need assistance in selecting an AD Bank for your business? Consult our expert today to simplify your foreign exchange transactions!