Companies that carry out foreign exchange business in India should have an FFMC ( Full Fledged Money Changer) license. Majority of people who travel abroad for different purposes need to exchange their domestic currency into the currency of the country which they are visiting. FFMC license online in India can be taken by submitting the form to respective RBI regional office. What is the FFMC license?Full-fledged money changer license is the license obtained by the company who are intending to carry out business related to foreign exchange of currency or any money related changing activity in India. Section 10(1) of Foreign Exchange Management Act,1999, AMCs ( Authorized Money Changer) are the entities authorized by RBI. Nobody can carry out the business of money exchanging unless they have FFMC license granted by RBI. What are the types of FFMC license?For any entity to operate, the following licenses can be acquired:
What are the activities carried out by FFMCs?FFMC can carry out the following activities;
What are the eligibility guidelines for obtaining FFMC Registration?According to RBI guidelines, the applicant must meet the following requirements-
What are the documents required?Following documents are required;
What is the procedure for acquiring FFMC registration from RBI?Step-1 Apply for FFMC license Submit your detailed application for the FFMC to the concerned regional office of the RBI along with the required documents. Step-2 'Fit And Proper' Criteria Applicant should fulfil fit and proper criteria which means there should not be any pending proceedings. Step-3 Review Of Application By RBI The RBI will review the application for fit and proper criteria for the applicant company director. If the RBI find the form fit, the application will be considered. Step-4 Certification for Registration If RBI is satisfied with the application and everything is fine, the RBI will grant the license within two or three months. Step-5 Clearance By Empowered Committee The applicant requires approval from the empowered committee, set up for the purpose. Annual Compliance Requirements for FFMC
ConclusionIt is necessary to obtain an FFMC license if anyone wishes to carry money exchange business in India. The FFMC registered by the Reserve Bank of India deals with foreign exchange for the explicit purpose like the purchase of foreign exchange from the residents and non-residents visiting India. And you need to follow the requirements and compliances after obtaining the FFMC license online in India.
1 Comment
|