Restricted money changer license

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law. Let's chat? Please fill out the form below to start chatting with the next available agent. Hence, any entity found carrying on any such money changing the business without obtaining the approval from the RBI will be subject to penalties under the prescribed Act.

The Full Fledged Money Changers are able to carry on the following activities:. The person applying for an FFMC license must satisfy the fit and proper criteria. If everything is correct and the RBI is satisfied, it will consider the application.

If the RBI is satisfied with the application and if everything is in line, the RBI will issue the license within the time frame of two to three months. This portion of the site is for informational purposes only. The content is not legal advice.

The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law. The franchisers, i. Regular spot audits of all locations of franchisees, at least once in six months, should be conducted by the franchiser.

Such audits should involve a dedicated team and incognito visits should also be used to test the compliance level of the franchisees. A system of annual inspection of the books of the franchisees should also be put in place. The purpose of such inspection is to ensure that the money changing business is being carried out by the franchisees in conformity with the terms of the agreement and prevailing Reserve Bank guidelines and that necessary records are being maintained by the franchisees.

However, settlement in respect of forex pre-paid cards has to be effected through AD Category-I banks. Further, Bank of Papua New Guinea has also shared the following range of serial numbers of banknotes which were never issued and were sold to a recycler in Europe and are therefore, not legal tender in Papua New Guinea:.

Skip to main content. Search the Website Search. Home FAQ. What is the objective behind allowing FFMCs to do business? Who can apply for an FFMC licence? Any person found undertaking money changing business without a valid licence is liable to be penalised. A Full Fledged Money Changer FFMC is an authorized entity who may purchase foreign exchange from non-residents and residents of India and sell the same for private and business travel purposes only to the people visiting abroad.

As Section 10 of the Foreign Exchange Management Act, prescribes, authorized money changers are the only entities in the country that can deal in money changing activities and offer necessary foreign exchange services. Any individual found undertaking any sort of money changing business without a valid license is liable to be penalised under the Act.