FFMC License
F ull Fledged Money Changers (FFMCs) are authorised by the Reserve Bank to deal in foreign exchange for specified purposes, to widen the access of foreign exchange facilities to residents and tourists while ensuring efficient customer service through competition.FFMCs are authorised to purchase foreign exchange from residents and non-residents visiting India and to sell foreign exchange for certain approved purposes.
AD Category –I Banks / ADs Category – II / FFMCs may appoint franchisees to undertake purchase of foreign currency. No person shall carry on or advertise that he carries on money changing business unless he is in possession of a valid money changer’s licence issued by the Reserve Bank. Any person found undertaking money changing business without a valid licence is liable to be penalised under the Act ibid.
FFMC License is Mandatory for the Organisation which is intended in Foreign Currency exchange business therefore various provisions applicable on it so such FFMC License should be as per provisions of the act otherwise such Non Compliance of these provisions lead to hefty fine, Penalty on the Management of organisation.
We, Compliance Hands, a team of more than 50 qualified professionals like CA, CS, Advocates etc, having experience of more than 5 years of handling tasks like this and have completed more than 2000 projects. We ensure all the compliance on time and you can carry on your business without any hiccups.
Activities of FFMC:
1. A FFMC may forward into franchise to others but subject some restriction of conversion of foreign currency notes, coins or travellers’ cheques into Indian Rupees.
2.FFMC/Franchise have a right to purchase foreign currency notes, coins and travellers cheques from residents as well as non-residents.
3. FFMC may sell Indian rupees to foreign tourists / visitors against International Credit Cards and take prompt steps to obtain reimbursement through normal banking channels.
Types of FFMC License
The following are the types of license that are required by an entity to operate as a Full Fledged Money Changer (FFMC).
1. Authorised Dealer Category-I Banks (AD Category–I Banks)
2. Authorised Dealers Category-II (ADs Category–II)
3. Full Fledged Money Changers (FFMCs)
Who can apply for FFMC:
1. The applicant has to be a company registered under the Companies Act,2013 or under any previous Companies Act.
2. The minimum Net Owned Funds (NOF) required for consideration as FFMC are as follows:
Category | Minimum Net Owned Funds |
Single branch FFMC | Rs.25 lakh |
Multiple branch FFMC | Rs.50 lakh |
3. Fit and proper’ criteria for the applicant FFMCs: The applicant/s should normally not exceed 70 years of age, should not be a Member of Parliament /Member of Legislative Assembly / Member of Legislative Council. For assessing integrity and suitability, factors like criminal record, if any, financial position, civil action initiated to pursue personal debts, refusal of admission to or expulsion from professional bodies, sanctions imposed by regulators or similar bodies, previous questionable business practices, etc. should be considered.
Appointment of Agents / Franchisees of Money Changing license by FFMC/AD-I/AD-II
1. Franchisee shall be carrying on Restricted Money Changing business i.e. conversion of foreign currency notes, coins or travellers’ cheques into Indian Rupees.
2. A franchisee can be any entity which has a place of business and a minimum Net Owned Funds of 10 lakh.
3. Franchisers are free to decide on the tenor of the arrangement as also the commission or fee through mutual agreement with the franchisee.
4. Franchisers should undertake the following minimum checks while conducting the due diligence of the franchisees & other conditions applicable and subject to change from to time as per RBI guideline.
1. Copy of the Pan Card of the Company.
2. Self attested copy of, Bank Statement, Landline Bill, Power Connection Bill, water Bill in the name of the establishment, Any license/certificate/number issued by any Govt. authority etc., as address proof of the establishment.
3. In case of company Memorandum/Articles of Association Board Resolution.
4. ID, Address Proof, Mobile Number & E mail ID of all Directors.
5. Business Activity of the Company.
6. E-Mail id and Mobile number of the firm/company.
7. Confidential report from the applicant’s bank/s in CIR format
8. Copy of Audited Balance sheet with Net-owned Fund Certificate
9. Declaration of con conviction of company or its directors under CRPC/ED/DRI.
10. Attested copies of audited accounts for the past 3 years.
“Change before you have to .” — Jack Welch,former chairman and CEO of General Electric
FFMC License
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