If you want to exchange your dollar for that rupee, you can’t just visit a small shop and get it done. You have to reach out to FFMCs. These Full-Fledged Money Changers have the sole right to exchange your money and provide you trusted services. However, if you want to take a step ahead and exchange the money yourself, and help others to do the same, you can get the FFMC License yourself.
The reserve bank of India authorizes companies with the ability to become Authorized Money Changers (AMC, another word for FFMC) and these are all the points related to it that you should know.
What it takes to get the FFMC License?
2. If the applicant wants to open a single FFMC branch, the minimum net owned fund required is INR 25 Lakh. In case of multiple branches, the Net Owned Fund requirement doubles to INR 50 Lakh.
3. If the applicant has a criminal record, then there is no way for him or her to get the FFMC License.
4. Once the FFMC License is issued by RBI, the applicant has to start their business within a span of 6 months.
2. An FFMC has the power to change Indian currency into foreign for the residents that are not in India against their international credit or debit cards.
3. RBI has allowed FFMC to conduct businesses such as purchase traveller’s cheques, coins or engage in Forex Trading.
4. FFMC can sell foreign exchange in return of Forex Business cards, prepaid cards and private visits.
2. Issuing Encasement Certificates: If someone wants to buy travellers coins, cheques, and foreign currency notes from residents or no residents of India, they can ask for the Issuing certificates from the FFMCs.
3. Helping the overseas visitors: FFMCs are always willing and able to help overseas visitors in the matter of foreign exchange activities.
2. Attach the application with the mandatory documents and submit it to the Foreign Exchange office in your state.
3. RBI will thoroughly assess your application and scrutinize you to see if you fit the “Fit and proper criteria”
4. Provided that you adhere to the “Fit and Proper” criteria and make meticulously filed the application, you will get the FFMC License.
2. A copy of the certificate of incorporation
3. AOA and MOA copies
4. Certified copies of the Audited Account, including the balance sheet and Profit & Loss Account.
5. Declaration that whatever you have entered in the application is correct.
6. Board resolution copy in which the decision to start FFMC is specified.
2. You only have six months to start your business after getting the RBI FFMC License.
3. FFMC license is not perpetual. There is an ending date after which, you have to get contact RBI and get FFMC License renewal.