Money changers must be operated by companies with a minimum capital of 10 million rupees (100,000 dollars), up from one million rupees (10,000 dollars), the Central Bank said in a statement.

It said the existing officially-recognised dealers will have six months to meet the new capital requirement. Failure will result in the cancellation of licences.

The Bank said it will also strictly forbid money changers to sell foreign exchange. They will only be able to buy foreign currency and sell back to the Central Bank through the commercial banking network.

"A separate bank account titled 'money changing' should be opened with a commercial bank to surrender foreign currency purchased by them during the course of their business activities within a period of three working days," the Bank said.