Full Fledge Money Changer (FFMC) License 

Full Fledged Money Changer is a company that carries out trading activities like forex currency after prior approval from the Reserve Bank of India (RBI). These companies are sanctioned under the Foreign Money Exchange Act of 1999. The RBI authorizes business entities to deal with foreign exchange for specific purposes. These business entities are referred to as Authorized Money Changers or AMCs.

From Foreign-Exchange or Forex trading to money exchanging, from dollars to rupees to any other currencies, becoming an Authorized Money Changer can assist you a lot.

Types of Authorized Money Changers (AMCs)s

There are three types of AMCs:

• Authorized Dealer Category: I (AD Category-I) Banks
• Authorized Dealer Category: II (AD Category –II) Banks
• Full-Fledged Money Changer (FFMC)

The reasons for the three types of AMCs to exist are the following:

• Foreign tourists have wider access to foreign exchange facilities.
• To enable residents to have wider access to foreign exchange facilities.
• Making sure that the customers get the most efficient services.
• To cater to the increasing competition in the market.

To work as an FFMC in India, the aspirant must get an FFMC License that the Reserve Bank of India issues. If any company dares to engage in Forex trading without the appropriate license, it will get penalized.

FFMC License Requirements

Before filing for the registration of a Full-Fledged Money Changer license at the RBI, the applicant must fulfil the following pre-conditions:

• The Full Fledged Money Change applicant should be an incorporated company under the Companies Act of 2013.
• The minimum Net Owned Fund should be
  • INR 25 lakhs in case of a single branch, and
  • INR 50 Lakh in multiple branches.
• The money-changing activity should be specified in the Memorandum of Association of the company.
• The company should be clean, i.e. there should be no current legal cases lodged against the company at the Department of Enforcement or the Department of Revenue Intelligence.

Documents Required for FFMC License

The following documents must be submitted with the RBI FFMC application for the smooth registration process:

• Certificate of Incorporation of the applicant company.
• Copy of Memorandum of Association of the applicant company.
• Copy of Articles of Association of the applicant company.
• A confidential report from the Bank.
• The latest copy of the latest audited license sheet and the statutory auditors' certificate.
• Details of the nature of the business.
• If the applicant files another FFMC application, those are required as well.

How to Get Money Exchange License in India

To get a money exchange license in India, it is essential to follow the given steps to complete money exchange license application smoothly.

Step 1: Collect Necessary Documents

You must gather all the necessary documents for the FFMC license. This includes Certificate of Incorporation, Memorandum of Association, Articles of Association, Detailed Business Plan and audited financial statements.

Step 2: File the Application

You must fill out the FFMC application form available on the RBI website. Make sure all the details are filled in correctly. Attach all the required documents with the application form. Now, submit the application form to the Regional Office of the Foreign Exchange Department of the RBI. 

Step 3: Examination by RBI

After receiving the application, the Reserve Bank of India will review it. It may seek additional information and clarification if needed. Make sure to answer them promptly to avoid delays.

Step 4: Inspection of Premises

The RBI may conduct an inspection of the business premises in order to verify the submitted information. You must ensure your business operations comply with the regulatory standards and legal requirements. 

Step 5: Grant of FFMC License

If the review and inspection go smoothly, the Reserve Bank of India will grant you the FFMC license. Once this license is issued, your business can commence currency exchange operations. If you wish, you can even conduct online money-changing business with this license.

Points to Ponder

• If you've received a notification that there is something wrong with your application, you have to take immediate action to rectify the issues. If you don't, you'll soon receive the notification that says, "FFMC License cancelled".
• Although forex trading is part of Full Fledged Money Changer, don't mistake this license with the Forex trading license or the Forex broker license. To get a Forex trading license in India, you'll need to adhere to the Forex Trading License requirements beyond the scope of a simple FFMC.
• You'll encounter sources that claim to have a money changer license for sale over your research. Don't fall into that trap. Report it the moment any such entity or individual.

FFMC License Renewal 

• The renewal application from an FFMC license holder must be made two months before the expiry of the licence or the period as the Reserve Bank of India may prescribe.
• Suppose the RBI accepts the FFMC license renewal application. In that case, the licence can continue in force until the licence expiry date or if the RBI rejects the application.
• The RBI will not entertain any FFMC license renewal application after the expiry of the licence.

Under Which FFMC Guidelines RBI Can Revoke the License of AMC

The Reserve Bank has a right to revoke the license which is granted to an Asset Management Company at any time if they find an issue which is related to: 

• Issue related to public interest.
• In case of infringement of any statutory or regulatory provision.
• License which is related to any existing condition of a money changer and implement new conditions.
• AMC has failed to comply with the set standards of the Foreign Exchange Management Act, 1999 or any rule, regulation, or notification, made by the authority.

Our Assistance for FFMC License Registration

Obtaining a Full-Fledged Money Changer (FFMC) license in India requires a structured process, and We simplifies its complete process. Here's why you should choose them:

FFMC License Consultancy

Best Consultation with our experts for FFMC licensing, eligibility, and compliance requirements.

Initial Assessment and Advice

Our team evaluates your business model and provides tailored advice to enhance approval chances.

Documentation Assistance

Our team assist in preparing and verifying all necessary documents to ensure accuracy and compliance.

Application Submission

We manages the entire submission process, ensuring a smooth and hassle-free application.

 

With Registrationwala’s expertise, you can secure your FFMC license efficiently. Contact us today or request to call back through the given form.

FAQs 

Q1. What is the full form of an FFMC?

A. FFMC stands for Full-Fledged Money Changer.

Q2. Who grants FFMC license in India?

A. The Reserve Bank of India (RBI) grants the FFMC license to individuals who want to conduct foreign exchange transactions.

Q3. Can agents or franchisees be appointed by an FFMC?

A. Yes, they can be appointed by an FFMC to extend money-changing services.

Q4. How long does the FFMC license remain valid?

A. The FFMC license remains valid for a period of one year from the date of issuance. The license needs to be renewed every year by the business to continue providing money-changing services.

Q5. What is the estimated time when a licensed FFMC must commence its business operations?

A. A newly FFMC licensed registered firm must commence its business operations within six months from the date of issuance of the license.

Q6. How to get your FFMC license renewed in India?

A. The renewal application from an FFMC license holder must be made two months prior to the expiry of the license.

Q7. What is the FFMC license registration fee set by the RBI?

A. There is no application processing fee for the FFMC license registration under the RBI.