{"id":1344,"date":"2021-01-16T09:21:30","date_gmt":"2021-01-16T09:21:30","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=1344"},"modified":"2021-01-16T09:21:32","modified_gmt":"2021-01-16T09:21:32","slug":"renewal-of-full-fledged-money-changer-license","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/renewal-of-full-fledged-money-changer-license\/","title":{"rendered":"Renewal of Full Fledged Money Changer License: A Complete Guide"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The Authorised Money Changers or AMCs are the companies that have obtained FFMC (Full Fledged Money Changer License) under <strong>section 10 of FEMA 1999<sup><a href=\"https:\/\/www.rbi.org.in\/SCRIPTs\/BS_FemaNotifications.aspx?Id=183\" class=\"text-primary\"><strong><em>[1]<\/em><\/strong><\/a><\/sup><\/strong> from RBI. Further, in India, an AMC may register itself either as a Full Fledged Money Changer or Restricted Money Changer (RMC). However, it shall be considerate to note that the said license remains valid for the period specified by RBI. That means to obtain Renewal of Full Fledged Money Changer License, one needs to again file an application with the Apex Bank.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a8c6993686\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a8c6993686\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/renewal-of-full-fledged-money-changer-license\/#Concept_of_Authorised_Money_Changers\" title=\"Concept of Authorised Money\nChangers\">Concept of Authorised Money\nChangers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/renewal-of-full-fledged-money-changer-license\/#Significance_of_FFMC_License\" title=\"Significance of FFMC License\">Significance of FFMC License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/renewal-of-full-fledged-money-changer-license\/#Permitted_Activities_for_Renewal_of_Full_Fledged_Money_Changer_License\" title=\"Permitted Activities for Renewal of\nFull Fledged Money Changer License\">Permitted Activities for Renewal of\nFull Fledged Money Changer License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/renewal-of-full-fledged-money-changer-license\/#Types_of_Authorised_Money_Changers\" title=\"Types of Authorised Money Changers\">Types of Authorised Money Changers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/renewal-of-full-fledged-money-changer-license\/#Eligibility_to_Obtain_Renewal_of_Full_Fledged_Money_Changer_License\" title=\"Eligibility to Obtain Renewal of\nFull Fledged Money Changer License\">Eligibility to Obtain Renewal of\nFull Fledged Money Changer License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/renewal-of-full-fledged-money-changer-license\/#Documents_Required_for_Renewal_of_Full_Fledged_Money_Changer_License\" title=\"Documents Required for Renewal of\nFull Fledged Money Changer License \">Documents Required for Renewal of\nFull Fledged Money Changer License <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/renewal-of-full-fledged-money-changer-license\/#Process_for_Renewal_of_Full_Fledged_Money_Changer_License\" title=\"Process for Renewal of Full Fledged\nMoney Changer License \">Process for Renewal of Full Fledged\nMoney Changer License <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/renewal-of-full-fledged-money-changer-license\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Authorised_Money_Changers\"><\/span>Concept of Authorised Money\nChangers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term AMC or Authorised Money\nChangers are the business entities that are engaged in the sale and purchase of\nforeign currencies and coins from both residents and non-residents. Further, it\nshall be considerate to note that these entities have been granted a license by\nthe Reserve Bank of India. That means the apex bank has full control over the\nbusiness affairs of authorised money changers. <\/p>\n\n\n\n<p>If in case any person carries out the activities of money changer without acquiring a valid license, then, in that case, the same will be penalized by the RBI. Also, the other name for these entities is Full Fledged Money Changers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Significance_of_FFMC_License\"><\/span>Significance of FFMC License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The main reason behind the grant of FFMC license is to remove the difficulties and hardships faced by the tourists and foreign visitors. As a result, RBI has granted <strong><a href=\"https:\/\/swaritadvisors.com\/ffmc-license\" class=\"text-primary\">FFMC Registration<\/a><\/strong> to certain specific hotels and firms as well. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Permitted_Activities_for_Renewal_of_Full_Fledged_Money_Changer_License\"><\/span>Permitted Activities for Renewal of\nFull Fledged Money Changer License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The activities permitted by the RBI for\nthe renewal of Full Fledged Money Changer License are as follows:<\/p>\n\n\n\n<ol><li>To\nenter into Franchise Agreement with the Apex Bank to carry out restricted\nbusiness activities;<\/li><li>To\nbuy and sell foreign currencies from both resident and non-resident;<\/li><li>To\nsell Indian Currency against the International Debit or Credit Card of the\nvisitors by using normal banking channels;<\/li><li>To\nsell Indian Currency against the following:<\/li><li>Business\nVisits;<\/li><li>Forex\nPre Paid Cards;<\/li><li>Private\nVisits;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Authorised_Money_Changers\"><\/span>Types of Authorised Money Changers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The different types of Authorised Money Changers prevalent in India are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Authorised-Money-Changers.png\" alt=\"Types of Authorised Money Changers\" class=\"wp-image-1346\" width=\"623\" height=\"206\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Authorised-Money-Changers.png 953w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Authorised-Money-Changers-300x99.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Types-of-Authorised-Money-Changers-768x255.png 768w\" sizes=\"(max-width: 623px) 100vw, 623px\" \/><\/figure><\/div>\n\n\n\n<ol><li>Full\nFledged Money Changers;<\/li><li>Authorised\nMoney Changers I \u2013 Banks;<\/li><li>Authorised\nMoney Changers II;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_to_Obtain_Renewal_of_Full_Fledged_Money_Changer_License\"><\/span>Eligibility to Obtain Renewal of\nFull Fledged Money Changer License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The eligibility to obtain renewal of\nfull fledged money changer license can be summarised as:<\/p>\n\n\n\n<ol><li>Must be registered as a <strong><a href=\"https:\/\/swaritadvisors.com\/private-limited-company-registration\" class=\"text-primary\">private limited company<\/a><\/strong> under the provisions of the Companies Act 2013;<\/li><li>Must have at least Rs 25 lakhs as Net Owned Funds to operate a single branch;<\/li><li>Must have at least Rs 50 lakhs as Net Owned Funds to operate multiple branches;<\/li><li>The object clause of the MOA must declare the intention to carry out the money changer activities;<\/li><li>Must not have any pending or previous civil or criminal case either with DRI (Department of Revenue Intelligence) or with DOE (Directorate of Enforcement); <\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_Required_for_Renewal_of_Full_Fledged_Money_Changer_License\"><\/span>Documents Required for Renewal of\nFull Fledged Money Changer License <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The documents required for renewal of\nfull fledged money changer license:<\/p>\n\n\n\n<ol><li>A copy the Original License issued;<\/li><li>A copy of the Latest Audited Financial Statements and Balance Sheet;<\/li><li>A copy of the Statement certified by Practising Chartered Accountant concerning NOF of the company;<\/li><li>Confidential Report from Bank in a Sealed Cover;<\/li><li>A duly Signed, Dated, and Stamped Declaration on Company\u2019s Letterhead concerning the Non-involvement in DRI (Department of Revenue Intelligence) cases;<\/li><li>A duly Certified Certificate from Practising CA regarding the compliance of Internal Control;<\/li><li>A duly Certified Certificate from Practising CA regarding the compliance ofAnti Money Laundering Guidelines;<\/li><li>A duly Certified Certificate from Practising CA regarding the compliance ofConcurrent Audit System;<\/li><li>A copy of the <strong><a href=\"https:\/\/swaritadvisors.com\/shop-establishment-license\" class=\"text-primary\">Shop and Establishment License<\/a><\/strong>;<\/li><li>A copy of KYC Policy (Know Your Customer) based on KYC Guidelines provided by RBI;<\/li><li>A Certificate for Fit and Proper Criteria, together with the details and particulars of all the Directors;<\/li><li>A Complete List of Shareholders, together with the details of their Shareholdings;<\/li><li>Details concerning the Franchisees and Branches of the Company;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Process_for_Renewal_of_Full_Fledged_Money_Changer_License\"><\/span>Process for Renewal of Full Fledged\nMoney Changer License <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To apply for the renewal of full fledged money changer license, the directors of the company requires to submit an application for the same one month prior to the date of expiry of such license.<\/p>\n\n\n\n<p>If in case, the directors of the company\nfail to submit the application for renewal of full fledged money changer\nlicense on time, then, in that case, the same will be rejected whenever filed.<\/p>\n\n\n\n<p>However, it shall be taken into due consideration that the previous license will remain valid till the time company receives a rejection from the authorities. Also, a company will not be qualified to furnish an application for the renewal of full fledged money changer license after the expiry of the original license. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In\na nutshell, every company who wish to start dealing in forex transactions needs\nto acquire FFMC Registration from RBI on a compulsory\nbasis. The said license remains valid for the period specified by RBI. <\/p>\n\n\n\n<p>That means the license holder needs to apply for the renewal of full fledged money changer license after the expiry of the original license. However, the same involves a lot of intricate and complex documentations. Therefore, it is advised to consult experts for the same.<\/p>\n\n\n\n<p>At <strong><a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/\">Swarit Advisors<\/a><\/strong>, our RBI and FEMA professionals, who are having vast previous experience, are to solve out all your doubts and cater to all your needs.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/requirements-to-avail-of-new-ffmc-license\/\">Requirements to Avail of New FFMC License: A Complete Guide<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Authorised Money Changers or AMCs are the companies that have obtained FFMC (Full Fledged Money Changer License) under section 10 of FEMA 1999[1] from RBI. Further, in India, an AMC may register itself either as a Full Fledged Money Changer or Restricted Money Changer (RMC). However, it shall be considerate to note that the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1345,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[57],"tags":[179],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1344"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=1344"}],"version-history":[{"count":4,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1344\/revisions"}],"predecessor-version":[{"id":1351,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1344\/revisions\/1351"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/1345"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=1344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=1344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=1344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}