The business entity which carries out foreign exchange business should have a Full Fledged Money Changer license. Many people who travel abroad for different purpose needs to convert their domestic currency into the currency of the country which they are visiting.FFMC license is mandatory for all the currency exchange business entities in India. What is the FFMC license in India?Full-fledged money changer license is the type of license acquired by the company that is willing to carry out business related to foreign exchange of currency or any money-related changing activity in India. As per Section 10(1) of the Foreign Exchange Management Act,1999, AMCs (Authorised Money Changer) are the one who is authorized by RBI. No one can carry out the business of money exchange unless they have an FFMC license approved by RBI. What are the types of FFMC license in India?Any business to operate, the following licenses can be obtained:
What are the benefits of an FFMC License in India?The benefits of FFMC license are-
What are the different activities carried out by FFMCs?
What are the eligibility criteria for getting FFMC Registration in India?As per RBI guidelines, the applicant must attain the following requirements-
What are the documents required for getting FFMC?
What is the process for acquiring FFMC registration in India? Step-1 Apply for an FFMC license Submit the detailed application to the concerned regional office of the RBI with the required documents. Step-2 'Fit And Proper'criteria Applicant must fulfill fit and proper criteria, which means there should not be any pending proceedings against the entity. Step-3 Review of application by RBI RBI will examine the application for fit and proper criteria for the director. If the RBI finds the form up to mark, the application will be considered. Step-4 Certification for Registration If RBI is satisfied and everything is fine with the application, the RBI will allow the grant of license within two or three months. Step-5 Clearance by the Empowered Committee The applicant requires prior approval from the authorized, empowered committee that is set up for the purpose. What are the Annual Compliance Requirements for FFMC?The annual compliance requirements for FFMC license are-
What is the process for the renewal of the FFMC License in India?The company should make an application for the Full Fledged Money Changers License Renewal one month before the License expiry date. After the expiry of the License, Application for renewal of a Money Changers License is of no use as no restoration can take place. Maintenance of Documents and Records by FFMC's In connection with its money-changing transactions, FFMC must maintain the following registers of activities Balance Book And Details Of
How can the Reserve Bank of India use its Rights to revoke the license given to any FFMC?As RBI has the power and right to revoke FFMC License in India, RBI can go for canceling if it is convinced that-
ConclusionIt is mandatory to obtain an FFMC license to anyone who wishes to carry the money exchange business in India. The FFMC entity registered by the Reserve Bank of India can deal with foreign exchange for a distinct purpose like the purchase of foreign exchange from the residents as well as non-residents visiting India. And the business entity also needs to follow the requirements as well as compliances after obtaining the FFMC license online in India. For any query, contact Corpbiz.
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June 2020
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