FFMC License in India is mandatory for certain entities to deal with foreign exchange or foreign securities. The responsibility to regulate FFMC License lies on the shoulders of Reserve Bank of India.
According to section 10 of the Foreign Exchange Management Act, 1999, authorized money changers are the only type of organizations engaged in money changing services and offer significant foreign exchange services.
FFMC License Holders purchase foreign exchange from Indian residents and non-residents and sell that foreign exchange to foreign visitors or tourists for private and business visits purposes.
Hotels, foreign visitors as well as travelers, along with the specific firms, get the registration to overcome the hindrances and also it will help them in the direction of traveler's cheques, coins, and foreign currency notes as per the RBI guidelines.
Before getting a money changer's license from the RBI end, no person has got the right to proceed or advertise that they deal in money changing activities. If there will be a person's involvement in any form of money changing business without a licit FFMC license in India, that person will amount to heavy penalties as per the Act.
Here, we are talking about those relevant documents that will get submitted to obtain the online FFMC License in India
Only those corporations are entitled to get an FFMC License in India who complies with the Requisites of Licensing. According to the Reserve Bank of India, the procedure to acquire FFMC License in India is explained step by step
After getting the License, Full Fledged Money Changers fulfills the following requirements
The company should make an application for the Full Fledged Money Changers License Renewal one month prior to the License expiry date. After the expiry of the License, Application for renewal of a Money Changers License is of no use as no restoration can take place.
In connection with its money-changing transactions, FFMC must maintain the following registers of activities
1- Foreign currency notes/coins in Form FLM 1
2- Form FLM 2 stores Travelers' cheques
As RBI has the power and right to revoke FFMC License in India, RBI can go for canceling if it is convinced that
RBI has authorized one more intermediary to trade in foreign exchange, i.e., Agents and Franchisees. To deal with money changing actions, Authorized Dealer Category- 1 Bank, Authorized Dealer Category- 2, and FFMC's can make the appointment for their Agents as well as Franchisees. Following are the key points related to this
Concerning This, The Following Salient Points Are
Authorized money dealers and Authorized money changers are known for playing a crucial role in Forex transactions. Banks get the authorization in the form of licenses to deal in foreign exchange in order to carry out foreign exchange transactions in the geographical ends of India. Several financial institutions have also received the authorizations to engage in foreign exchange transactions connected with their primary business activity.