Full Fledge Money Changer License

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

From Forex trading to money changing, from dollars to rupees to any other currencies, becoming an authorised money changer can assist you a lot.

There are three types of AMCs :

1. Authorized Dealer Category: I Banks (AD Category-I Banks)
2. Authorized Dealer Category: II Banks (AD Category –II)
3. Full-fledged Money Changers also called as FFMCs

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

• The foreign tourists have a wider access to foreign exchange facilities
• To enable residents have a wider access to foreign exchange facilities
• Making sure that the customers get the most efficient service
• There is increased competition in the market.

In order to work as an FFMC in India, the aspirant has to get an FFMC License that is issued by the Reserve Bank of India. If any company dares to engage with Forex trading without the appropriate license, then they are going to get penalized.

FFMC License meaning the authorization to establish your business as an FFMC. FFMC License full form is Full-Fledged Money Changer License.

Eligibility Criteria for FFMC License

As per the full fledged money changers rbi guideline, following are the eligibility criteria for the money changer license in India:

•  The applicant of the Full Fledged Money Change should be an incorporated company under the Companies act 2013.
• The minimum Net owned fund should be INR 25 lakhs in case of a single branch, and INR 50 Lakh in case of multiple branches.
• The activity of Money changing activity should be specified in the Memorandum of Association of the company.
• The company should be clean, and by this we mean that there should be no current legal cases lodged against the company at the department of Enforcement or Department of Revenue Intelligence. 

Documents Required for FFMC License

• Certificate of incorporation of the company
• Copy of MOA and AOA of the company
• A confidential report from the Bank
• The latest copy of the latest audited license sheet along with the certificate from the statutory auditors involved.
• Details of Nature of the business
• If there is other FFMC application filed by the applicant, those are required as well.

FFMC License Procedure

Following is the procedure to acquire the Full Fledged money changer license:

• Prepare yourself by running a background on already existing licensed money changer. In your research, you’ll see an FFMC license list. Scrutinize it from head to toe and research in each individual, full-fledged money changer license holder. It would give you a rough idea of the financial stability needed to run an operation once you get currency exchange license in India.
• Company incorporation according to the Companies act 2013 and RBI Guidelines
• Collection and collation of the documents required to file the application of FFMC license online.
• File the FFMC license application or full fledged money changer license application online and pay the FFMC license fees.
• Submission of these documents along with the application to the concerned jurisdictional office of the Reserve Bank of India
• Liaison with the RBI until FFMC license in acquired.

After inspection of the documents and the application, the RBI grants the FFMC License. With FFMC license at your side, you can even start an online money changing business if you wish for it.

Note: If you’ve received the 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”

Note 2: All though forex trading is the part of Full Fledged money exchange, don’t mistake this license with the Forex trading license, or the Forex broker license. To get the Forex trading license in India, you’ll need to adhere to the Forex Trading License requirements, which are beyond the scope of a simple FFMC.

Note 3: Over your research, you’ll encounter sources that claim to have money changer license for sale. Don’t fall into that trap. In fact, report it the moment any such entity or individual.

Like every other business license, the money changer license is not permanent. After a certain amount of time, you’ll need to apply for FFMC license renewal. The RBI FFMC License renewal procedure is pretty simple, and it doesn’t require much hassle.

How can our assistance make you an RBI money changer?

For any assistance in this matter, you’d need the assistance of an FFMC license consultant. For FFMC License, RBI has created some special roadblocks to make the process difficult. Our consultants manually remove these roadblocks to provide you a way get a head start in money changer business.