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Is your company engaged in the purchase and sale of foreign currency such as notes, coins, and traveller’s cheque? If yes, you need to obtain the FFMC License in India. Get your money changer license with our experts and operate as a money changer legally.
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If you are an entrepreneur looking to tap into India’s growing foreign exchange market, getting a Full-Fledged Money Changer License (FFMC), also known as a Foreign Exchange License, is one of the most important steps. An FFMC license, granted by the Reserve Bank of India (RBI), authorizes the companies to deal in foreign exchange services legally. Unlike unauthorized operators, it enables businesses to buy and sell foreign currency, issue forex prepaid cards, and encash traveller’s cheques in compliance with RBI guidelines.
In India, the grant of an FFMC License online serves as a gateway for businesses to expand into the lucrative forex services industry while ensuring full regulatory compliance. Confused about how to get an FFMC license? Connect with our experts and make the registration process seamless.
Facilitates legal foreign currency exchange for corporates
Enables issuance & encashment of forex cards and traveller’s cheques
Drives growth opportunities in the forex & travel industry
Builds credibility with an RBI-authorized license
Doubled the Forex market in India in 4 years
Current Forex market value is $60 billion
Get RBI authorization to provide currency exchange, traveller’s cheques, and forex card services with Enterslice. With us, securing the FFMC license registration is a charm.
The authorized money changers play a crucial role in facilitating foreign exchange transactions for tourists and residents, in the manner discussed below:
The authorized money changers are a type of licensed AMCs, authorized to conduct trade in foreign currency and traveller’s cheques.
The authorized money changers enable issuing an encashment certificate for non-residents to later reconvert any upsent local currency back into foreign currency.
The authorized money changers enable the conversion of local currency held by non-residents into foreign currency, provided a valid encashment certificate is produced.
The authorized money changers enable issuing prepaid forex cards to residents travelling abroad, subject to the appropriate anti-money laundering and know your customer guidelines.
The authorized money changers enter into franchise agreements to expand their reach, appoint agents or franchisees to convert restricted money-changing activities.
The authorized money changers enable setting up easily accessible locations like cities and travel hubs to provide cash and prepaid forex cards for tourists arriving in or departing from the country.
The authorized money changers must ensure secure and legal transactions, operated under strict regulations mandated by the country’s central bank.
The different types of money changers or dealers granted the RBI authorization under section 10 of the FEMA Act, 1999, are as discussed below-
Acquiring a full-fledged money changer license offers various benefits for businesses registered as an FFMC business. Have a look at the following are the key benefits of a Full-Fledged Money Changer License in India:
The grant of a Full-Fledged Money Changer License authorizes the companies to facilitate foreign currency exchange facilities and services comprehensively.
The Full-Fledged Money Changer license granted to the companies authorizes them to carry forward the money-changing facility for both the residents and non-residents of India.
The certificate of encashment for traveller's cheques and foreign currency notes is issued by the companies holding the Foreign Exchange license in India.
The issuance of an FFMC license online enables companies to facilitate cross-border transactions to support international trade and commerce.
The benefit of holding a Full-Fledged Money Changer License enables the FEMA services for tourists to conduct foreign currency exchange activities as specified in the FEMA Act of 1999.
The Full-Fledged Money Changer License holders are entitled to handle various currency transactions, including coins, traveller’s cheques, and foreign currency.
The FFMC license holders ensure the simplification of the issuance of store value, charge, and smart cards for Indian residents travelling abroad.
The process of securing an FFMC license registration in India involves compliance with the following steps. Given below is the stepwise guide to apply for FFMC license online in India-
The first step requires applicants to fulfil all the eligibility criteria as specified by the Reserve Bank of India.
The next step requires the applicant to prepare and compile all the mandatory documents needed for acquiring the regulatory FFMC license in India.
Next, the applicant must draft and prepare all the necessary documents required for acquiring an FFMC license online and processing currency exchange in India.
Next, the RBI is authorized to review and examine the application and documents duly submitted by the applicant companies.
Upon successful review of the application, a detailed background verification and relevant checks of the financial stability of the company must be conducted.
After the vigilant inspection is complete, the RBI is authorized to grant the license clearance certificate for a full-fledged money changer in India.
Start your RBI-approved forex business today. Apply for an FFMC License online with Enterslice.
The timeframe to apply for an FFMC license online typically takes around 2 to 3 months, depending on the accuracy of documentation, financial eligibility, and the RBI’s review process.
This stage, which requires the review of RBI’s eligibility and adequate net owned fund criteria, takes around 2 to 3 weeks.
It typically takes around 2 to 3 weeks for the preparation of necessary documents, including the incorporation certificate, M&AOA, audited financials, board resolution, etc.
It takes approximately 1 week to make a submission of the formal application to the concerned regional office of the RBI, along with all supporting documents.
The timeline for conducting a thorough RBI review and assessment, which includes an eligibility check, financial soundness, and compliance with FEMA guidelines, takes around 3 to 4 weeks.
The RBI takes around 4 to 8 weeks to conduct due diligence background verification of the promoters, directors, and the financial background of the company.
Once all checks are cleared, the RBI issues an FFMC license online, authorizing the company to conduct foreign exchange activities within 2 to 3 weeks.
After reviewing the license, the time required for the companies to ensure compliance with RBI’s operational guidelines, maintain proper records, and submit periodic returns varies.
The following is the list of documents required for acquiring an FFMC License in India:
Certificate of incorporation & business commencement
MOA (with a clause to carry out money-changing activity)
Copy of the banks’ confidential report
Copy of the audited balance sheet of the company
Details of associated financial companies, like NBFCs
Certificate from statutory auditors (for net-owned funds)
Last 3 years audited P&L accounts
Details of the nature of the company
Copy of previous application for FFMC (if any)
Details of the board resolution for acquiring FFMC
Declaration that no proceeding is initiated by the Directorate of Enforcement/ Directorate of Revenue
As India’s economic landscape continues to evolve, the Reserve Bank of India (RBI) consistently revises the FFMC regulatory framework, ensuring transparency, compliance, and effective regulation of the foreign exchange sector. Staying updated with these FFMC License RBI guidelines is crucial for businesses engaged in currency exchange, forex cards, and traveller’s cheque services.
Keeping track of recent updates on FFMC licensing guidelines emphasizes the importance of preventing penalties and helps maintain long-term credibility in the forex service market. Here, we enable businesses to explore the RBI updates on FFMC licensing norms and what they mean for current and aspiring full-fledged money changers in India:
Stricter KYC & ALM Compliance
Digitalization of Licensing Process
Expanded Scope of Permissible Transactions
Revised Reporting Requirements
In India, the RBI permitted activities for FFMCs, and authorized entities to carry out specific foreign exchange services under the FEMA Act, 1999. These activities allow FFMCs to legally facilitate forex services for individuals, corporates, and institutions, ensuring smooth currency exchange operations in India’s growing forex market.
Have a look at the specific foreign activities permitted by the RBI under section 10 of the Foreign Exchange Management Act, 1999:
FFMCs are allowed to purchase foreign currency notes, coins, and traveller’s cheques from both residents and non-residents visiting India.
In addition, the FFMCs are allowed to issue an encashment certificate, only upon the purchase of foreign currency, required for reconverting unspent Indian currency for non-residents.
FFMCs are allowed to sell foreign exchange to Indian residents for specific purposes such as private and tourist travel, business travel, overseas education, and medical expenses abroad.
The FFMCs are allowed to sell Indian rupees to foreign tourists and visitors against international credit and debit cards.
For any non-compliance with the FFMC registration requirements, the RBI reserves the right to impose a penalty, revoke or cancel the license granted to the authorized money changers. The following are the circumstances under which the RBI holds the right to revoke or penalize the Full-Fledged Money Changer license holders.
The eligibility criteria for obtaining a money changer license in India are as discussed below:
After acquiring the forex license in India, certain requirements must be complied with. The following is the list of mandatory post-FFMC licensing compliance requirements:
As a leading consulting firm, Enterslice specializes in acquiring an FFMC license and provisioning a franchise agreement. Connect with us and choose our legal advisory services for obtaining a full-fledged money changer license in India:
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-- Testimonials
โWorking with Enterslice for our FFMC license was seamless. Their team managed the RBI submission, background checks, and documentation with precision. Fast, reliable and deeply knowledgeable - highly recommendedโ
Verified Customer
โThanks to Entersliceโs expertise, our business secured the FFMC license ahead of schedule. Their regulatory insight and practical support made all the difference. Professional, responsive and trusted advisors for the forex industry.โ
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