{"id":9970,"date":"2020-04-11T08:30:43","date_gmt":"2020-04-11T03:00:43","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=9970"},"modified":"2020-12-17T12:23:33","modified_gmt":"2020-12-17T06:53:33","slug":"everything-you-need-to-know-about-currency-exchange-business-model","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/everything-you-need-to-know-about-currency-exchange-business-model\/","title":{"rendered":"Everything you need to know about Currency Exchange Business Model"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In recent times, the Forex industry has flourished at a rapid pace in India. The currency exchange business model is a gateway to profit-making opportunities for budding entrepreneurs. Since the money changers play a vital role to thrive in the Indian economy, RBI has laid some stringent guidelines to monitor their functions. Further, the Reserve Bank of India authorizes a currency exchange business with <strong><a href=\"https:\/\/swaritadvisors.com\/ffmc-license\" class=\"text-primary\">FFMC License<\/a><\/strong>. Section 10 of the Foreign Exchange Management Act, 1999, mandates the FFMC License for any entity that wants to pursue money exchanging activities.&nbsp;<\/p>\n\n\n\n<p>If you also strive to start a currency exchange business, then this write-up will act as a complete guide for you.<\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-background\" href=\"https:\/\/swaritadvisors.com\/ffmc-license\" style=\"background-color:#01669c\">Apply FFMC License In India &#8211; Start Forex Business Today<\/a><\/div>\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-6a3af720b3205\" 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-6a3af720b3205\"  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\/learning\/everything-you-need-to-know-about-currency-exchange-business-model\/#An_overview_of_Full_Fledged_Money_Changer-_FFMC\" title=\"An overview of Full Fledged Money Changer- FFMC\">An overview of Full Fledged Money Changer- FFMC<\/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\/learning\/everything-you-need-to-know-about-currency-exchange-business-model\/#Functions_of_Authorized_Money_Changer\" title=\"Functions of Authorized Money Changer\">Functions of Authorized Money Changer<\/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\/learning\/everything-you-need-to-know-about-currency-exchange-business-model\/#Types_of_FFMC_License\" title=\"Types of FFMC License \">Types of FFMC 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\/learning\/everything-you-need-to-know-about-currency-exchange-business-model\/#Eligibility_Criteria_to_acquire_FFMC_License\" title=\"Eligibility Criteria to acquire FFMC License\">Eligibility Criteria to acquire FFMC License<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"An_overview_of_Full_Fledged_Money_Changer-_FFMC\"><\/span><strong>An overview of Full Fledged Money Changer- FFMC<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Full Fledged Money Changer abbreviated as FFMC is an RBI approved entity. Such business entities hold power to purchase foreign currency from the residents as well as non-residents of India, thereby sell it to those people who intend to visit abroad for private and business travel. &nbsp;<\/p>\n\n\n\n<p>All aspirants of currency exchange business model need to keep these specifications in mind prescribed under the Foreign Exchange Market Act, 1999:<\/p>\n\n\n\n<ul><li>Only FFMC registered or authorized money changers can run the activities of currency exchange.<\/li><li>Unauthorized currency exchange businesses cannot advertise their money-changing operations until they procure a valid FFMC license.<\/li><li>If an individual is found guilty of undertaking a money exchange business without a valid license, then he\/she shall be penalized under the Act.<\/li><li>RBI has issued some <a href=\"https:\/\/rbidocs.rbi.org.in\/rdocs\/notification\/PDFs\/17MD4774FA600E4B4AF483BE8C0760D65E07.PDF\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"guidelines to deal with foreign notes (opens in a new tab)\">guidelines to deal with foreign notes<\/a>, coins, and cheques for safeguarding the interest of foreign tourists<\/li><\/ul>\n\n\n\n<div class=\"browse\">\n<p>Browse through our articles on services provided at <a href=\"https:\/\/swaritadvisors.com\">Swarit Advisors<\/a>, and just let us know if we can help you with your NBFC registration or NBFC for Sale or RBI Advisory Services.<\/p>\n<div class=\"browse1\">\n<table class=\"table1\">\n<tbody>\n<tr>\n<td><a href=\"https:\/\/swaritadvisors.com\/nbfc-registration\"><span>NBFC Registration<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/ffmc-license\"><span>FFMC License<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/payment-bank-license\"><span>Payment Bank License<\/span><\/a><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/swaritadvisors.com\/nbfc-takeover-agreement\"><span>NBFC Takeover<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/prepaid-wallet-license\"><span>Prepaid Wallet License<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/multi-state-co-operative-society-registration\"><span>Co-operative Society Registration<\/span><\/a><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/swaritadvisors.com\/nbfc-for-sale\"><span>NBFC For Sale<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/peer-to-peer-lending-license\"><span>P2P Lending License<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/payment-gateway-license\"><span>Payment Gateway License<\/span><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Functions_of_Authorized_Money_Changer\"><\/span><strong>Functions of Authorized Money Changer<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following are the activities undertaken by the registered AMCs:<\/p>\n\n\n\n<ul><li>An Authorized Money Changer can enter into a franchise agreement to carry the Restricted Money Changing business that includes the conversion of foreign currency coins, notes &amp; travellers\u2019 cheques into Indian currency (INR).<\/li><li>A registered currency exchange business model and its franchises can purchase any foreign currency from the non-residents and residents of India.<\/li><li>RBI facilitates FFMCs to sell Indian Currency (INR) to foreign tourists or visitors against International Debit Cards or International Credit Cards.<\/li><li>Full Fledged Money Changers can commence in foreign exchange dealings for the purpose of Forex prepaid cards, private visits and business visits.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_FFMC_License\"><\/span>Types of FFMC License <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"749\" height=\"431\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/04\/FFMC-infographic.png\" alt=\"Types of FFMC License \" class=\"wp-image-9972\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/04\/FFMC-infographic.png 749w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/04\/FFMC-infographic-300x173.png 300w\" sizes=\"(max-width: 749px) 100vw, 749px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_to_acquire_FFMC_License\"><\/span><strong>Eligibility Criteria to acquire FFMC License<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You are <strong>eligible for FFMC license<\/strong> if you have the following characteristics:<\/p>\n\n\n\n<ul><li>Only a registered entity under Companies Act 2013, can apply for an (FFMC) Full Fledged Money Changer License.<\/li><li>Your entity must have a minimum Net Owned Funds (NOF) of INR 25 Lakhs to apply for a single-branch license while it increases to INR 50 Lakhs for the multiple-branch license.<\/li><li>There should not be any pending criminal or civil cases against your entity with the enforcement of DRI (Directorate of Revenue Intelligence).<\/li><li>The object clause of the Memorandum of Association (MOA) must reflect the money changing activities that were previously undertaken by your entity.<\/li><li>After obtaining the FFMC license, your entity must execute its currency exchange business activities within 6 months from the issuance date of the Forex License.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>In recent times, the Forex industry has flourished at a rapid pace in India. The currency exchange business model is a gateway to profit-making opportunities for budding entrepreneurs. Since the money changers play a vital role to thrive in the Indian economy, RBI has laid some stringent guidelines to monitor their functions. Further, the Reserve [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":9971,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[350,544],"tags":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/9970"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=9970"}],"version-history":[{"count":7,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/9970\/revisions"}],"predecessor-version":[{"id":17920,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/9970\/revisions\/17920"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/9971"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=9970"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=9970"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=9970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}