FULL FLEDGED MONEY CHANGER LICENCE
FULL FLEDGED MONEY CHANGER (FFMC) LICENCE
A Full Fledge Money Changer (FFMC) is a company registered under the Companies Act, 1956/ Companies Act, 2013 and seeking Licence from the Reserve Bank of India to be able to deal in foreign exchange for specified purposes. No person shall carry on or advertise that he carries on money changing business unless he is in possession of a valid money changer’s licence issued by the Reserve Bank of India. Any person found undertaking money changing business without a valid licence is liable to be penalised.
Eligibility Criteria to Register as FFMC:
(i) The company should be registered under the Companies Act, 1956/Companies Act 2013
(ii) The minimum Net Owned Funds (NOF) required for consideration as FFMC is Rs.25 lakh for Single branch FFMC and Rs.50 lakh for Multiple branch FFMC.
(iii) The promoters and the Directors of the company are fit and proper
(iv) Banker’s Report of the applicant in sealed cover.
Brief procedure to obtain FFMC Licence:
To register/ Set up FFMC in India, Company has to apply Reserve Bank of India for the Licence to carry the business of money changing. Following are the brief steps in this regards:-
- Incorporate a company under a companies Act 2013 with minimum paid-up capital of 25 lakh for Single branch FFMC and Rs.50 lakh for Multiple branch FFMC.
- Open current bank account of the Company and deposit the paid-up capital in accordance to the amount subscribed by each of the subscriber to the memorandum of association.
- Submit a physical application along with necessary annexures to respective Regional Office of the Foreign Exchange Department of the Reserve Bank under whose jurisdiction the registered office of the applicant falls.
- RBI shall scrutinize the application and may require further
information/clarification/submission. - Submit the requisite information/documents to RBI within time prescribed.
- The Bank may, after being satisfied, grant a CoR as an FFMC.
- The permit/Licence granted should be renewed each year by giving the application documents to the Reserve Bank of India before it gets expired.