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 9. What is Foreign Exchange Dealers Association of India (FEDAI) and how it has been formed?

The Foreign Exchange Dealers Association of India (FEDAI) is a self-regulatory group for banks that trade foreign currency. It is located in Cuffe Parade, Mumbai. FEDAI sets the rules for trading money between banks and helps members talk to the Reserve Bank of India (RBI). [1, 2, 3]



How It Was Formed
  • Year Established: FEDAI was created in 1958.
  • Legal Status: It is a non-profit company registered under Section 25 of the Companies Act, 1956.
  • Creation Reason: Before it was formed, banks trading foreign money had no shared rules. FEDAI was started so all banks could follow the same guidelines for buying and selling foreign currency. [1, 3, 4, 5]
What It Does
  • Makes Rules: It creates standard rules for international trade and forex transactions.
  • Trains Bankers: It teaches bank workers how to handle foreign exchange and international trade.
  • Helps the RBI: It works with the RBI to create new market rules and represents member banks. [1, 3, 4]
You can learn more or check upcoming training events on the official FEDAI Website. [6]





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