Full Fledged Money Changers (FFMC)

Full-Fledged Money Changer is a corporation that includes out trading activities like forex after previous approval from the Reserve bank of India. These groups 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 functions. These enterprise entities are called Authorized Money Changers or AMCs.

There are 3 types of AMCs:

Authorized Dealer Category: I Banks (AD Category-I Banks)
Authorized Dealer Category: II Banks (AD Category –II)
Full-fledged Money Changers also referred to as FFMCs
The reasons for the 3 types of AMCs to exist are subsequent:

The foreign travelers have a much wider get entry to forex centers
To allow citizens to have a wider get entry to forex centers
Making certain that the customers get the most efficient service
There are multiplied competition within the marketplace.
In order to work as an AMC in India, the aspirant has to get an AMC License this is issued by using the Reserve Bank of India. If any employer dares to engage with the Forex market trading without the correct license, then they are going to get penalized.

Eligibility Criteria for FFMC License

1.  The applicant of the Full Fledged Money Change should be an incorporated company under the Companies act 2013.
2. 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.
3. The activity of Money changing activity should be specified in the Memorandum of Association of the company.
4. 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

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

FFMC License Procedure

1. Company incorporation according to the Companies act 2013
2. Collection and collation of the documents required to file the application of FFMC license
3. Submission of these documents along with the application to the concerned department of the Reserve Bank of India
4. Liaison with the RBI until FFMC license in acquired

After inspection of the documents and the application, the RBI grants the FFMC License