FFMC LICENSE

About 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. 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 traveller’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.

Authorised Persons under Foreign Exchange Management Act, 1999 for FFMC License:-

1. select banks (as Authorised Dealers Category-I) to carry out all permissible current and capital account transactions as per directions issued from time-to-time
2. select entities (as Authorised Dealers Category-II) to carry out specified non-trade related current account transactions, all the activities permitted to Full Fledged Money Changers and any other activity as decided by the Reserve Bank
3. select financial and other institutions (as Authorised Dealers Category-III) to carry out specific foreign exchange transactions incidental to their business / activities
4. select registered companies as Full Fledged Money Changers (FFMC) to undertake purchase of foreign exchange and sale of foreign exchange for specified purposes viz. private and business travel abroad.

Conditions to apply for FFMC License:-

1. The organization applying for a Full-fledged money changer License must be registered under the Companies Act 2013/1956.
2. 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.
3. The object clause of Memorandum must reflect the action of money changing to be pursued through the corporation.
4. There must not be any civil or criminal case pending against the corporation with the Department of enforcement of the Department of Revenue Intelligence.
5. 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.

Procedure to apply for 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.

Documents required for FFMC License:-

1. A copy of the Certificate of Incorporation of the Entity.
2. The Memorandum and Articles of Association comprising of a provision for undertaking money changing businesses or an appropriate amendment with the same effect.
3. 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.
4. 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.
5. A Confidential Report from the banker of the Applicant in a sealed manner.
6. Information concerning the sister or associated concerns operating in the financial sector such as NBFCs.
7. A certified copy of Board Resolution to undertake money changing business.