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Read MoreWhat is an FFMC License?
A Full-Fledged Money Changer (FFMC) License is a vital authorization that allows organizations to buy foreign exchange from residents and non-residents in India, facilitating currency exchange for private and business travel purposes. Under Section 10 of the Foreign Exchange Management Act (FEMA) of 1999, only authorized money changers can engage in money-changing activities and provide essential foreign exchange services. To ease the process for foreign visitors and traveller’s, specific corporations and hotels can also register to handle foreign currency notes, coins, and travellers’ cheques, as directed by the Reserve Bank of India (RBI).
Legal Compliance
No individual or entity is permitted to advertise or conduct money-changing business without a valid FFMC License issued by the RBI. Engaging in money-changing activities without this license is punishable under the Act.
Types of FFMC Licenses
To operate as a Full-Fledged Money Changer (FFMC), the following licenses are necessary:
Authorized Dealer Category-I Banks (AD Category–I Banks)
Authorized Dealers Category-II (ADs Category–II)
Full Fledged Money Changers (FFMCs)
Documents Required for FFMC License Registration
To obtain an FFMC License, the following documents are required:
A copy of the Certificate of Incorporation of the entity.
The Memorandum and Articles of Association, including provisions for money-changing activities or an appropriate amendment.
A copy of the latest audited accounts, certified by statutory auditors, confirming the net-owned funds as of the date of application.
Audited Balance Sheets and Profit and Loss Accounts for the previous three financial years.
A confidential report from the applicant's banker in a sealed envelope.
Information regarding sister or associated firms operating in the financial sector, such as Non-Banking Financial Companies (NBFCs).
A certified copy of the Board Resolution authorizing the undertaking of money-changing business.
Registration Process
The application for the FFMC License should be downloaded from the RBI website. It, along with the required supporting documents, should be submitted to the Foreign Exchange Department of the Reserve Bank of India at the regional centre where the applicant's registered office is located.
Steps to Obtain an FFMC License:
Submit a complete application for the FFMC License to the concerned regional office of the RBI.
The RBI will evaluate the suitability of the entity's directors under the "fit and proper" criteria. If all conditions are met, the FFMC License will be issued within 2 to 3 months.
Clearance from the Empowered Committee is required, and the RBI's decision regarding approval will be final and binding.
At BizMantra, we provide meticulous assistance in filing for the FFMC License in accordance with the rules. Our professional tech-based online and legal services help simplify the process of obtaining the FFMC License, addressing tax concerns, and ensuring compliance with all legal requirements.
