FFMC License

A Full Fledged Money Changer (FFMC License) is authorized organizations who buy foreign exchange from non-residents and residents of India and sell the same for private and business travel purposes only towards the individual visiting abroad. As Section 10 of the Foreign Exchange Management Act, 1999 recommends, authorized money changers are the only organizations in the nation that could deal in money changing actions and offer essential foreign exchange services. For the reason of removing the obstacles faced by foreign visitors as well as voyagers, specific corporations and hotels have additionally been offered the registration in the direction of dealing in foreign currency notes, coins as well as traveler’s cheques under the directions issued by the RBI frequently.

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 kinds of license that are necessary by an entity to work as a Full Fledged Money Changer (FFMC License) are:-

Authorized Dealer Category-I Banks (AD Category–I Banks).
Authorized Dealers Category-II (ADs Category–II).
Full Fledged Money Changers (FFMCs).

Eligibility to apply for FFMC License in India

The organization applying for a Full-fledged money changer License must be registered under the Companies Act 2013/1956.
The corporation must have a minimum net owned finance of Rs.25 lakhs towards applying for a single branch license as well as Rs.50 lakhs for a multiple branch license.
The object clause of Memorandum must reflect the action of money changing to be pursued through the corporation.
There must not be any civil or criminal case pending against the corporation with the Department of enforcement of the Department of Revenue Intelligence.
After getting the FFMC License the corporation must continue its business activity within 6 months from the date of issuance of Forex License and must intimate the RBI.

Document Required for FFMC License Registration

The documents required for getting an FFMC License are;

A copy of the Certificate of Incorporation of the Entity.
The Memorandum and Articles of Association comprising of a provision for undertaking money changing businesses or an appropriate amendment with 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 audited Balance Sheet and, Profit and Loss Account of the Entity for the immediate three years prior to the Date of Application for the License, wherever applicable.
A Confidential Report from the banker of the Applicant in a sealed manner.
Information concerning the sister or associated concerns operating in the financial sector such as NBFCs.
A certified copy of Board Resolution to undertake money changing business.

Registration Process

The application form for the FFMC license should be downloaded from the website of RBI. Alongside the essential supporting documents, the application form should be submitted towards the Foreign Exchange Department of the Reserve Bank of India at the regional center under the domain of which the registered office of the candidate falls.

The procedure of getting an FFMC License -

A complete and complete application for the FFMC License is submitted towards the concerned regional office of the Reserve Bank of India.
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.
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.

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FAQs

Who is allowed to be a Full Fledged Money Changer?

Entities other than the bank could be a Full Fledged Money Changer.

What kind of entities could apply for FFMC License in India?

Any entity which is enlisted under the Companies Act, 2013/1956 are qualified to apply for the FFMC permit in India.

Where an application will be filed for FFMC License?

For the FFMC License, the application is filed along with the required documents with the foreign exchange department of the Reserve Bank of India where the registered office of the corporation is situated.

How a Renewal of FFMC License is made?

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.