How to get ffmc license in india: Know It All

FFMC license is the permission to start a Full Fledged Money Changer, a business entity with the objective of providing money exchange services. To obtain said permission, you need to:

• Understand the meaning of this license
• Meet the eligibility criteria
• Collect the required documents, and
• Follow the steps.

Let’s go over each of those topics one by one.

Understand the meaning of the FFMC license

FFMC license or Full Fledged Money Changer License is a business license – an authorization – that allows your company to provide currency exchange services. Governed under the FEMA act, these money exchange services include:

• issuing traveller’s cheques
• Providing foreign exchange services to the foreign and the Indian nationals
• Purchasing foreign currencies.

Once you obtain the license, you can partake in the aforementioned activities for 3 years, afterwards, you’d need to apply for FFMC license renewal.

Meet the eligibility criteria

FFMC license is issued by the Reserve Bank of India. As an APEX Bank of India, RBI makes it a point to only issue the permission to exchange currencies to those entities that it deems eligible.

Following are the eligibility criteria that you’d need to meet to obtain the FFMC license.

You can’t apply for the license as an individual. At the very least, you must have registered as a Private Limited Company. That company would act as the applicant for this license.

The minimum net worth of your incorporated company should be at least 25 Lakh rupees – but that’s for only a single branch of your currency exchange centre.

If you wish to open multiple branches, the net worth requirement increases by double to 50 Lakh rupees.

Note:  You should consider the net worth requirement as the initial license cost.

The memorandum of association should clearly state that your company provides money changing service.

There should be no pending criminal cases against your company.

Read Other Useful Content: TEC Certification

You or your co-directors in any Department of Legal Enforcement.

Gather the documents required for the FFMC license

The documents you need to submit to the RBI for successfully obtaining FFMC license is as follows:

• Copy of Certificate of Registration
• Certified copy of memorandum of association
•  Articles of Association
• Audited Net Worth Certificate
• Declarations
• Audited balance sheet of the company
• Confidential banker’s Certificate
• Certified copy of the board resolution to apply for FFMC license.

The steps to obtain FFMC license in India

Following are the steps to obtain this license in India:

• Gather the documents required
• Go to the official RBI portal. Register, login and start filling the application form.
• Upload the documents to verify the details you’re entering in the application form.
• Submit the FFMC license to finalize your application submission.
• The RBI will assess your application and your documents. It does an in depth analysis to assess your eligibility as an applicant.
• If you meet all the RBI regulations specific to FFMC, you will obtain the license.

How to get FFMC License in India?

The steps obtaining the license to become a Full Fledged Money Changer are quite easy. All you need to do is read this blog.