Full Fledged Money Changer license

Under section 10 of (FEMA) Foreign Exchange Management Act 1999, Reserve Bank authorises Authorised Money Changers (AMC) who can undertake the money-changing business. Without possession of a valid money changer’s license issued by RBI, no person shall carry on a money-changing business.

A full-fledged money changer (FFMC) is an authorised money changer to purchase foreign exchange from non-residents visiting India & residents & to sell foreign exchange for private & business travel purposes only.

Foreign Exchange Dealers (FFMCs) play a crucial role in facilitating currency exchange for individuals and businesses. FFMCs must obtain a license from the Reserve Bank of India (RBI) to operate legally and provide foreign exchange services. Here are some key benefits of obtaining an FFMC license:

• Competitive Edge

We are not alien to the existing competition in foreign exchange and how an FFMC license of RBI grants you competitiveness amidst non-licensed operators. As for customers, they ought to choose an authorized FFMC over an unregulated entity, keeping in mind the legality of transactions. For instance, the process gives you a sneak peek at acquiring a fair market share by establishing yourself as a competitive player. 

• Foreign Exchange

FFMC gives the facility of bringing in and taking out foreign exchange. Like that, FFMC offers sales facilities for foreign exchange as well. 

• Authorised Money Changes

Both residents and visitors can sell their foreign money notes, coins, and travellers' checks to FFMC. Additionally, you might exchange Indian Rupees for foreign visitors' international credit or debit cards while taking swift action to get paid back through standard banking channels. For instance, FFMC may carry out transactions using travellers' checks, and foreign currency notes at exchange rates set by market circumstances and consistent with the current market rates.

• Diversification of Services

It is duly noted how the FMMC License encourages diversifying services beyond currency exchange. One might even offer services ranging from remittances and prepaid travel to other financial-related products. Such a thing does not just diversify revenue but supports loyalty.  

• Certificate of Encashment

FFMC  license online may issue a certificate of encashment when asked for in purchases of foreign currency notes, coins and travellers' cheques from residents and non-residents.

From increased trust and credibility to diversification of services, an FFMC license Of RBI sets you apart from unlicensed operators and positions you as a reliable player in the market. It attracts more customers and ensures regulatory compliance, leading to long-term success and growth.

RBI may revoke the license of FFMC on the conditions

• If it is in the public interest to do so.
• The FFMC license online has failed to comply with any condition subject to which the authorization is granted or has contravened any of the provisions of the Foreign Exchange Management Act, 1999, or any rule, regulation, notification, direction, or order made thereunder. The Reserve Bank also reserves the right to revoke the authorization of any of the offices for infringement of any statutory or regulatory provision.
• The Reserve Bank may at any time vary or revoke any of the existing conditions of a money changer's license or impose new conditions.

Entry Norms For Full Fledged Money Changer FFMC License of RBI | Money Exchange License in India.

• The applicant has to be a Company Registered under Company Act 2013
• Minimum Net Owned funds required for consideration as FFMC

Note:- The Net Owned Funds of applicants, other than banks, should be calculated as per the following.

Owned Funds:- (Paid-up Equity Capital + Free reserves + Credit balance in Profit & Loss A/c) minus (Accumulated balance of loss, Deferred revenue expenditure, and other intangible assets)

Net Owned Funds:- Owned funds minus the number of investments in shares of its subsidiaries, companies in the same group, and all (other) Non-Banking Financial Companies as also the book value of debentures, bonds, outstanding loans, and advances made to and deposits with its subsidiaries and companies in the same group in excess of 10 per cent of the Owned funds.

Application in the prescribed form should be submitted to the respective Regional Office of the Foreign Exchange Department of the Reserve Bank under whose jurisdiction the registered office of the applicant falls, along with the following documents:

• Copy of the Certificate of Incorporation.
• Memorandum and Articles of Association containing a provision for undertaking money-changing business or an appropriate amendment filed with the Company Law Board.
• Copy of the latest audited accounts with a certificate from the Statutory Auditors certifying the Net Owned Funds as of the date of application. Copies of the company's audited Balance Sheet and Profit & Loss Account for the last three years, wherever applicable.
• Confidential Report from the applicant's banker in a sealed cover.
• A declaration to the effect that no proceedings have been initiated by / are pending with the Directorate of Enforcement (DoE) / Directorate of Revenue Intelligence (DRI) or any other law enforcing authorities against the applicant company or its directors and that no criminal cases are initiated/pending against the applicant company or its directors.
• A declaration to the effect that proper policy framework on KYC / AML / CFT, in accordance with the guidelines issued by Reserve Bank of India, Department of Banking Regulation, Central Office as referred to in their 'Master Direction – Know Your Customer (KYC) Direction, 2016' and other instructions in this regard so far and from time to time in future, mutatis mutandis, applicable to APs, will be put in place on obtaining the approval of the Reserve Bank and before the commencement of operations.
• Details of sister / associated concerns operating in the financial sector, like NBFCs.
• A certified copy of the board resolution for undertaking money-changing business.

The Process of Obtaining Full Fledged Money Changer (FFMC) License calls for you to undertake the following steps, which are as follows-

• Step 1:- Connect with Corpseed

Firstly, contact Corpseed as your one-stop solution provider. 

• Step 2:- Assign a Dedicated Professional 

Corpseed aligns a dedicated professional to help you with the Full-fledged money changer license. 

• Step 3:- Filing Application 

Thirdly, the expert will assist you regarding the detailed application of the FFMC License submitted to the regional office of the Reserve Bank of India. 

• Step 4:- Issuance of Full Fledged Money Changer (FFMC) License

Then, RBI will review the Director of the applicant entity under its "fit and proper" criteria. If everything suits their needs & criteria as mentioned, Full Fledged Money Changer (FFMC) License would be issued within 2 to 3 months.

• Step 5:- Approvals

It is with the clearance & approvals issued by the Empowered committee that the approvals issued by them will be final & binding. 

Note: The Entity will not be considered eligible to obtain an FFMC License if a case by any law-enforcing authorities is initiated or is pending against the Entity or any of its Directors.

At Corpseed, we understand the immense value of attaining a Full-Fledger money changer License and its tremendous impact on your business's success. With our team of highly experienced professionals, we are committed to helping you unlock new levels of achievement and propel your business forward. By partnering with us, you gain access to expertise and knowledge to ensure a seamless and efficient payment processing system.