A Full Fledged Money Changer is an authorized Money Changer that facilitates foreign currency exchanges between Non-Residents Indians visiting India and residents. These FFMCs sell foreign exchange for private purposes as well as business travel. The Apex Bank,  i.e., the RBI, has defined the operational structure of a Full Fledged Money Changer within the realm of Indian law. Therefore, every FFMC license holder must adhere to the operating instructions from the RBI, particularly for the sales of FOREX. Such adherence is necessary to function smoothly in the international markets. We have discussed some of these regulations in this article, so read carefully.

The RBI FFMC can sell foreign exchange up to a certain prescribed ceiling. These limits are specified in the Foreign Exchange Management (Current Account Transaction) Rules of 2000. The RBI money changer can also sell forex to a person who is a resident of India. For this purpose, the forex trading license can undertake one or more private visits to any country abroad (except Nepal and Bhutan).

Exchange for such visits will be available on a self-declaration basis to the traveller regarding the amount of foreign exchange availed during a financial year. Foreign nationals in India are also eligible to avail of this quota for private visits. But the applicant must not avail of facilities for remittance of his salary, savings, etc., abroad in terms of extant regulations.

Currency Exchanges for Business Visits by FFMC Company

A Currency Exchange license holder can sell foreign exchange to a person resident of India for undertaking business travel. They can also attend a conference or specialized training. Money Changer Business can also sell forex to people who want to maintain expenses for a patient going abroad for medical treatment.

Also, forex can be provided for a check-up or accompanying an attendant to a patient going abroad for medical treatment. The forex trading license requirements must execute these forexes to the limits specified in the FEMA (Current Account Transactions) Rules of 2000.

Forex Prepaid Cards by the FFMC License Company

The FFMC license company can issue prepaid forex cards to residents travelling on private as well as business visits abroad. The FFMC must subject these transactions to the KYC, AML, or CFT requirements. However, the FFMC license holders can affect the settlement regarding prepaid forex cards. In this regard, prepaid foreign currency cards are a form of foreign currency, similar to foreign currency notes or traveller's cheques.

As such, the FFMCs selling prepaid foreign currency cards for travel purposes must comply with the rigorous standards of due diligence and KYC. The FFMC license company must maintain the same standards in selling foreign currency notes or traveller's cheques to their customers.

Full Fledged Money Changers RBI guidelines

The Reserve Bank will not generally prescribe the documents to be verified by the FFMCs while releasing foreign exchange. In the case of traveller’s cheques, the traveller must sign the cheques in the presence of an authorized official. The FFMC must hold the purchaser's acknowledgment for receipt of the traveller’s cheques on record.

The FFMCs can release foreign exchange for travel purposes based on a declaration. The traveller must submit a declaration regarding the amount of foreign exchange availed of during the financial year.

The FFMCs can accept payment in cash below Rs.50,000/- (Rupees fifty thousand only) against the sale of foreign exchange for travel abroad (for a private visit or any other purpose). The FFMS must restrict the sale of foreign currency denominations to the limits set by the RBI of the traveller's visit.

To learn more about the FFMC license requirements, connect with the FFMC experts at Registrationwala.

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