Full Fledge Money Changer: Eligibility and Documentation

  • March 09, 2023
  • Dushyant Sharma
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The Full-Fledged Money Changer or an FFMC is a financial body responsible for conducting forex businesses in India. The Apex Bank RBI authorizes such FFMCs to facilitate currency exchanges at their facility within the realms of the stated regulations. But such entities must be registered with the Authority to conduct forex businesses. In this article, we will discuss the legal as well as documentation requirements for applying for an RBI FFMC license in India. Let us look at them one by one.

 

Essential Requirements for Full-Fledged Money Changer license registration in India

To be eligible for a Full-Fledged Money Changer (FFMC) license in India, you must meet the following requirements:

Company Registration for FFMC License

Your company must be registered with the Registrar of Companies (ROC) as a sole proprietorship, partnership, or private limited company.

Capital Requirements for the RBI FFMC License 

The minimum net owned funds (NOF) requirement for an FFMC is INR 25 lakhs.

Minimum Experience for Company Executives

The directors of the company must have at least 5 years of experience in foreign exchange activities.

Fit and Proper Criteria for the Top Company Personnel

The directors and shareholders of the company must meet the Reserve Bank of India's (RBI) fit and proper criteria, which include having a good track record, financial soundness, and integrity.

FFMC Licensee’s Compliance

Every RBI-licensed FFMC must have internal policies, procedures, and controls to ensure compliance with the Foreign Exchange Management Act (FEMA) and other relevant laws and regulations.

Operational Procedure of FFMC’s Premise Facility

Every RBI-licensed FFMC must have a physical office in India, and the office must meet the requirements set out by the RBI, such as having a secure room for storing cash and having CCTV cameras installed.

Staff Requirements for Full-Fledged Money Changer Company

The Full-Fledged Money Changer must have at least one designated director who has completed the mandatory course on foreign exchange management conducted by the RBI.

Once your company meets these eligibility requirements, you can apply for an FFMC license from the RBI. The application process typically takes around 2 to 3 months, and you will need to submit various documents. The RBI will also conduct background checks on the company's directors and shareholders before granting the FFMC license from RBI.

 

Documentation for Full-Fledged Money Changer License Application

To apply for a Full-Fledged Money Changer (FFMC) license in India, you will need to prepare and submit the following documents to the Reserve Bank of India (RBI):

RBI FFMC License Application Form

You will need to complete and submit the FFMC application form, which is available on the RBI website.

Business Plan of the Full-Fledged Money Changer

You will need to provide a detailed business plan that outlines your proposed business activities, target market, marketing strategy, and financial projections. You will also need to provide a profile of your company, including its history, ownership structure, and management team.

Financial Statements of the Full-Fledged Money Changer

You will need to provide audited financial statements for the past three years, if available. If your company is a startup, you will need to provide financial projections for the first three years of operation.

Compliance Policies of the Full-Fledged Money Changer

You will need to provide policies and procedures that demonstrate how your company will comply with the Foreign Exchange Management Act (FEMA) and other relevant laws and regulations.

Fit and Proper Declarations of the Company Personnel

You and your company's directors and shareholders will need to submit fit and proper declarations that attest to your good character, integrity, and financial soundness.

Documents for Premise Facility Details 

You will need to provide information on your company's physical office, including its location, floor plan, and security measures. You will also need to provide information on your company's staff, including the following:

  • Qualifications
  • Experience
  • Training Records
  • Other Supporting Documents

You may be required to provide additional documents, such as your company's incorporation certificate, shareholders agreement, and employment contracts. It is important to ensure that all the required documents are complete and accurate before submitting your application. The RBI may reject incomplete or inaccurate applications, which can delay the licensing process.

For more on FFMC license registration procedure, connect with the RBI Experts at Registrationwala. 

 

 


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Dushyant Sharma
Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.

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