Jana Small Finance Bank is a stock buzzing loud and clear. The stock, which had closed yesterday at Rs.438.65, opening flat and soon rising to an intraday high at Rs.490.70, up 12%. The stocks 52-week high is at Rs.760.85 and low at Rs.364.  

The stock is up after RBI yesterday granted the Bank a Licence to act as Authorized Dealer Category-I (AD-I) under section 10 of FEMA, 1999 to deal in foreign exchange subject to compliance of applicable regulations in this regard.

This means that the bank is authorized by RBI  to deal in foreign exchange and perform various transactions related to forex.

Key Responsibilities and Privileges of AD Category-I Banks:

1. Foreign Exchange Transactions:
   • Buy and sell foreign currencies.
   • Conduct forex remittances (both inward and outward).
   • Issue foreign currency demand drafts, travelers' cheques, etc.
2. Trade-Related Transactions:
   • Process import and export payments.
   • Open and maintain Letters of Credit (LCs).
   • Handle export bills, inward remittances, and advance payments for trade.
3. Capital Account Transactions:
   • Facilitate foreign investments (FDI, FPI, ECB, etc.).
   • Manage outward remittances for investments abroad (ODI, LRS, etc.).
   • Handle repatriation of funds by NRIs/PIOs.
4. Hedging and Derivatives:
   • Offer forex risk management products like forward contracts, options, and swaps.
   • Help businesses and individuals hedge currency risks.
5. Compliance with FEMA Regulations:
   • Ensure all forex transactions comply with RBI and FEMA guidelines.
   • Report transactions to RBI as per regulatory requirements.

Significance of AD-I Status:

• The bank can act as an intermediary between customers and RBI for foreign exchange-related services.
• It enables businesses and individuals to conduct international transactions efficiently.
• AD-I banks play a crucial role in implementing India’s forex policies.