FULL FLEDGE MONEY CHANGER LICENSE IN INDIA (FFMC)

Any company which intent to do a forex currency exchange activity or

money changing activity in India have to obtain a Full Fledged Money
Changer License from Reserve Bank of India. Rserve Bank of India
annually publishes guidelines for Full Fledged Money Changers vide a
master circular on Memorandum of Instruction on Money Changing
Activities.
All FFMC license holder in India and any company which intent to
obtain the FFMC license in India are oblige to follow this circular and
provision of Foreign Exchange Management Act, 1999.
1. What is a Full fledged money changer (FFMC) : Entities which are
authorised by Reserve Bank of India to do money changing business
as per section 10 of Foreign Exchange Management Act , 1999.
2. Can entities other than banks be a Full Fledged Money Changer:
Yes entities other than Bank can be a Full Fledged money change and
they are Authorised Dealer Category II where as the Banks are
Authorised Dealer Category I
3. What are the types of entities which can apply for a FFMC
license in India: Any company which are registered under the
Companies Act, 2013 are eligible to apply for the FFMC license in India
4. What are the conditions to be fulfilled to apply for FFMC License
in India:
1. The company should be registered with Registrar of Companies
as per Companies Act, 2013 or any other erstwhile act such as
companies Act, 1956.
2. The company should have a net owned fund of Rs.25Lakhs to
apply for a single branch license and Rs.50lakhs for a multiple
branch license

3. Money Changing Activity should be one of the main activities

mentioned in the object clause of the company.
4. There should not be any case pending against the company with
Department of enforcement of Department of Revenue
Intelligence.
5. Can a company obtain franchisee license from an existing
FFMC: Yes any entity registered under the Companies A, having a
minimum net owned fund of Rs.10Lakhs and one of the Main object
clause of the company is money changing business can obtain a
franchise license from an existing FFMC.
6. Where should we apply for the FFMC License: The application
form along with the necessary documents should be submitted to the
foreign exchange department of the regional office of Reserve Bank Of
India where the registered office of the company is situated.
7. What are the documents required to apply for the FFMC License
in India:
1. Application form as per Annexure II prescribed by the Reserve
Bank of India Master Circular on Memorandum of Instruction on
Money Changing Activities
2. Copy of Incorporation Certificate of the Company
3. Copy of Commencement of the Business of the Company
4. Copy of the last three years Audited Balance Sheet and Profit
and Loss account wherever applicable
5. Statutory Auditor Certificate of Net Owned Funds as on the date
of application
6. Copy of Memorandum of Association and Article of Association
containing the main object clause of money changing business.

7. Customer Information Report from the Bank. It Should be a

Confidential Report addressed to the RBI in a sealed cover for
the bank and all the key management personal
8. Certified Copy of the Board Resolution to undertake money
changing activity and to apply for the FFMC license with RBI
9. A declaration that no proceeding against the company or any of
the directors have been initiated by the Department of
Enforcement or Department of Revenue Intelligence
10. A declaration that a proper policy frame work will be placed for
Anti Money Laundering- AML, Know Your Customer-KYC and
Combating the Financing Terrorism-CFT as per the guidelines
issued by the RBI and as amended from time to time before
commencement of operation and after obtaining the FFMC
license from RBI
8. Does the License need to be renewed annually: Yes the license
need to be renewed every year by providing the applicable documents
to the Reserve Bank of India.
9. Can a Franchisee do all the activities of the Authorised Dealer
II Category: No, the franchisee is allowed do only restricted money
changing activities as per the master circular of RBI.