Overview of FFMC License
A full-fledged money changer license or FFMC registration from RBI is the permission required to start an AMC or authorized money changer business in India. However, to avail this licence, the directions issued by the RBI in the Master Circular, including the provisions of Section 10 of FEMA 1999, must be followed.
What are the following types of FFMC License
There are three types of AMCs
- Authorized Dealer Category: I (AD Category-I) Banks
- Authorized Dealer Category: II (AD Category –II) Banks
- Full-Fledged Money Changer (FFMC)
What is FFMC License for FFMC License in India?
The conditions for obtaining FFMC registration from RBI are as follows
- The applicant must be a public or private limited company registered under the Companies Act 2013.
- Minimum Rs 25 crore as NOF (Net Owned Funds) to manage a single branch.
- Minimum Rs 50 crore as NOF (Net Owned Funds) is required to manage multiple branches in India.
- The object clause in the memorandum of association of the company must declare the intention to act as a money changer in India.
- The business entity should not have any civil or criminal cases pending before the Revenue Intelligence Department.
- After obtaining FFMC registration from RBI, the said business entity must commence its business operations within six months from the date of registration.
What is FFMC License for FFMC License in India?
The conditions for obtaining FFMC registration from RBI are as follows
- The applicant must be a public or private limited company registered under the Companies Act 2013.
- Minimum Rs 25 crore as NOF (Net Owned Funds) to manage a single branch.
- Minimum Rs 50 crore as NOF (Net Owned Funds) is required to manage multiple branches in India.
- The object clause in the memorandum of association of the company must declare the intention to act as a money changer in India.
- The business entity should not have any civil or criminal cases pending before the Revenue Intelligence Department.
- After obtaining FFMC registration from RBI, the said business entity must commence its business operations within six months from the date of registration.
Eligibility criteria for FFMC License in India
Before applying for registration of a full money changer license with the RBI, the applicant must fulfill the following pre-requisites
- A fully fledged money change applicant should be an incorporated company under the Companies Act, 2013.
- Should have minimum net worth of funds 25 lakhs in case of a single branch, and INR 50 lakhs across multiple branches.
- The money-changing activity should be specified in the memorandum of association of the company.
- There should not be any legal cases pending against the company in the Enforcement Department or Revenue Intelligence Department.
Documents required to obtain an FFMC License
The documents required for FFMC Registration from RBI are as follows
- Certificate of Commencement (COC);
- Certificate of Incorporation (COI);
- A copy of Memorandum of Association (MOA);
- A copy of Articles of Association (AOA);
- Latest Audited Financial Statements and Balance Sheet;
- A copy of certificate received from the Statutory Auditor regarding the Total Net Owned Fund;
- Profit and Loss Account for the last 3 financial years;
- Confidential Report from Bank in a Sealed Cover;
- Details in respect of Nature of Activities carried out;
- A copy of the Board Resolution passed;
- Details in respect of Associated Companies operating in the Financial Sector;
- A copy of Declaration regarding Policy Framework on the matter as follows:
- KYC (Know Your Customer);
- CFT (Combating the Financing of Terrorism Customer Data);
- AML (Anti Money Laundering)
A copy of Declaration issued by the Department of Revenue Intelligence (DRI) concerning that it has never conducted any investigation against the directors of the company;
FAQs About FFMC License?
Disclaimer: The content provided here is for informational purposes only. Your access to or use of the Site or Content does not create an attorney-client relationship. The information provided on this website is not legal or professional advice and should not be relied upon for such purposes or as a substitute for legal advice from a licensed attorney in your state. For more information and tailored information, please feel free to contact us.