Full Fledge Money Changer License In India (FFMC)
Any company which aim to do a forex currency exchange activity or cash changing activity in India need to acquire a Full Fledged Money Changer License from Reserve Bank of India. Reserve Bank of India yearly distributes rules for Full Fledged Money Changer’s vide an master circular on Memorandum of Instruction on Money Changing Activities.
All FFMC permit holder in India and any company which purpose to acquire the FFMC permit in India are oblige to follow this circular and provision of Foreign Exchange Management Act, 1999.
1. What is a Full fledged Money Changer (FFMC):
Entities which are approved by Reserve Bank of India to do money changing business according to section 10 of Foreign Exchange Management Act , 1999.
2. Can Entities other than banks be a Full Fledged Money Changer:
Yes entities other than Bank can be a Full Fledged money change and they are Authorized Dealer Category II where as the Banks are Authorized Dealer Category I
3. What are the Types of entities which can apply for a FFMC permit in India:
Any company which are enlisted under the Companies Act, 2013 are qualified to apply for the FFMC permit in India
4. What are the conditions to be satisfied to apply for FFMC License in India:
- The company ought to be enrolled with Registrar of Companies according to Companies Act, 2013 or any other erstwhile act, for example, organizations Act, 1956.
- The company should have a net claimed asset of Rs.25Lakhs to apply for a solitary branch permit and Rs.50lakhs for a multiple branch permit.
- Money Changing Activity must be one of the primary activities specified in the article proviso/clause of the company.
- There must not be any case of evidence pending against the company with Department of enforcement of Department of Revenue Intelligence.
5. Can a company acquire franchisee permit from a current FFMC:
Yes any entity registered under the Companies A, having a base net owned asset of Rs.10Lakhs and one of the Main object clause of the company is money changing business can get franchise permit from a existing FFMC.
6. Where one should apply for the FFMC License:
The application form along with the essential documents must be submitted to the foreign exchange department regional office of Reserve Bank Of India where the registered office of the company is situated.
7. What are the documents required to apply for the FFMC License in India:
- Application form as per Annexure II prescribed by the Reserve Bank of India Master Circular on Memorandum of Instruction on Money Changing Activities
- Copy of Incorporation Certificate of the Company
- Copy of Commencement of the Business of the Company
- Copy of the last three years Audited Balance Sheet and Profit and Loss account wherever applicable
- Statutory Auditor Certificate of Net Owned Funds as on the date of application
- Copy of Memorandum of Association and Article of Association containing the main object clause of money changing business.
- Customer Information Report from the Bank. It Should be a Confidential Report addressed to the RBI in a sealed cover for the bank and all the key management personal
- Certified Copy of the Board Resolution to undertake money changing activity and to apply for the FFMC license with RBI
- A declaration that no proceeding against the company or any of the directors have been initiated by the Department of Enforcement or Department of Revenue Intelligence
- A declaration that a proper policy frame work will be placed for Anti Money Laundering- AML, Know Your Customer-KYC and Combating the Financing Terrorism-CFT as per the guidelines issued by the RBI and as amended from time to time before commencement of operation and after obtaining the FFMC license from RBI
8. Does the License should be renewed yearly:
Yes the permit should be renewed each year by giving the applicable document to the Reserve Bank of India.
9. Can a Franchisee do all the activities of the Authorised Dealer II Category:
No, the franchisee is permitted do just limited money changing activities according to the master circular of RBI.