All important points about FFMC License

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?

Following are the points that state the eligibility criteria of becoming capable of getting the license to become Full-fledged money Changer:1. The applicant must register a company first.

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.

What can the holders of FFMC License do?

Following is the list of activities an FFMC is allowed to conduct once it acquires the FFMC License:1. An FFMC can enter into a franchisee contract with another entity (authorized) to perform activities such as coin conversion and money exchanging.

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.

Why should you choose to become an FFMC?

In India, FFMC are able to provide several benefits and that’s the reason why they are booming. Following are the benefits that Indian FFMCs provide to the people:1. Furnishing Sale Facilities: FFMCs can furnish sale facilities for the purpose of Foreign exchange.

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.

How to get the FFMC License?

If and when you fulfil the eligibility criteria to file the application of FFMC License online, follow the steps below:1. Fill the application form of FFMC License and make sure all the information you file is correct.

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.

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Mandatory documents to attach along with the FFMC License application Correct documentation is the primary factor that makes the licensing process successful. Following are the documents you are required to attach the application:1. A sealed confidential report of your bank highlighting your net owned funds and other details.

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.

After Obtaining the license

Getting the FFMC License won’t automatically make you eligible to start your business, you have to take care of some post approval steps as well.1. If applicable, you have to submit the Shops and Establishment Act registration of your business center.

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.

Conclusion

FFMC business is booming in India because of all the globalization and India’s tourism allure. While you can start your FFMC business on your own, remember that getting the Full fledged Money Changer License isn’t as easy as we have specified. Even after you get the license, you have to do some post approval activities to start your business the right way. In all of this, our FFMC License consultant can stand with you at all times.