An authorised company known as a Full Fledged Money Changer (FFMC License) is one that purchases foreign currency from both Indian residents and non-residents and then sells it to the person travelling overseas for either personal or professional reasons. According to Section 10 of the Foreign Exchange Management Act, 1999, the only businesses permitted to conduct money-changing business and provide necessary foreign exchange services are authorised money changers. Specific businesses and hotels have also been given the opportunity to register in order to deal with foreign currency notes, coins, and traveler’s checks under the guidelines frequently provided by the RBI in order to remove the difficulties experienced by foreign tourists and travellers.
No person is allowed to continue or advertise that they carry on money changing business unless they own a legitimate money changer’s license issued through the RBI. Any person found undertaking any kind of money changing the business without a legitimate license is legally responsible to be punished under the Act.
Types of FFMC License :
The documents required for getting an FFMC License are;
- A copy of the entity's certificate of incorporation.
- The Memorandum and Articles of Association containing a clause authorising the operation of firms that exchange money, or a suitable revision having the same effect.
- A copy of the latest audited accounts of the Entity with a certificate from Statutory Auditors certifying the Net-Owned Funds as on the Date of Application for the License.
- Several copies of the entity's audited profit and loss account and balance sheet for the three years immediately before the date of the licence application, as applicable.
- A confidential report that has been sealed by the applicant's banker.
- Details on related or affiliated businesses that operate in the financial industry, such as NBFCs.
- A certified copy of the board resolution authorising the transaction of money.
The procedure of getting an FFMC License -
1. A complete and complete application for the FFMC License is submitted towards the concerned regional office of the Reserve Bank of India.
2. The Director of the candidate Entity would be looked under the “fit and proper” criteria through the RBI. If everything is in accordance with the satisfaction of the RBI, at that point the Full Fledged Money Changer (FFMC) License would be issued within a period or 2 to 3 months.
3. Clearance through the Empowered Committee is a need and the Reserve Bank’s decision in the subject of giving approval or not would be conclusive and obligatory.
Entities other than the bank could be a Full Fledged Money Changer.
Any entity which is enlisted under the Companies Act, 2013/1956 are qualified to apply for the FFMC permit in India.
The application for the FFMC License must be submitted along with the necessary paperwork to the Reserve Bank of India’s foreign exchange department, which is located where the corporation’s registered office is.
An application for the renewal of a Full Fledged Money Changer (FFMC) License should be made before 1 month from the expiry date of the license. No request for the restoration of a money changer’s license shall be accepted after the expiry of the FFMC license.
Yes, the permit must be renewed each year by giving the application documents to the Reserve Bank of India.