A Full Fledged Money Changer is a money changer authorized to purchase foreign exchange from non-residents visiting India and residents. These entities can also sell foreign exchange for private and business travel. The Reserve Bank of India has well-defined the operational structure of an FFMC in the realm of Indian law. Every registered FFMC license holder must adhere to these operating instructions to function smoothly in the Indian and international markets. We have discussed some of these regulations in this article, so read carefully.
FFMC LICENSE : Foreign Exchange Transactions
Currency Declaration Form
Foreign Exchange can be brought into India freely without limit. But they must provide the Currency Declaration Form (CDF) declaration on arrival to the Customs Authorities. Suppose foreign exchange does not exceed USD 10,000 or its equivalent. Also, the value of foreign currency notes does not exceed USD 5,000 or its equivalent. In that case, the declaration on CDF will not be insisted upon.
RBI restrictions on Foreign Exchange
The RBI prohibits taking out foreign exchange in a form other than foreign exchange from a money changer. But the forex trading license holder must cover it with the general or special permission of the Reserve Bank. Non-residents have general permission to take out an amount not exceeding the initially brought, subject to compliance with the above provisions.
Public Purchase of Foreign Currency by FFMC License Holders
Free Purchase of Foreign Currency
Authorized Persons of an FFMC can freely purchase foreign currency notes, coins, and travellers cheques from residents as well as non-residents. The FFMC must ask the tenderer to produce the same when it brings the foreign currency in by declaring on form CDF. The production of declaration in CDF should invariably be insisted upon. These are one of the post-registration FFMC license requirements.
Payment Request in Indian Rupees
Requests for payment in cash in Indian Rupees to resident customers towards purchasing foreign currency notes and/or Travellers' Cheques from them may accede to the extent of only USD 1,000 or its equivalent per transaction. Requests for payment in cash by foreign visitors or Non-Resident Indians may accede to only USD 3,000 or its equivalent per transaction.
International Credit/Debit Cards
Authorized Persons can sell Indian Rupees to foreign tourists/visitors against International Credit Cards or International Debit Cards and take prompt steps to obtain reimbursement through normal banking channels.
FFMC Payment Options
While making payments in Indian Rupees to resident customers towards the purchase of foreign currency notes and/or traveller's cheques, the FFMC can make the payment in the following:
CashAccount payee chequeDemand draftINR debit cardsElectronic funds transfer through banking channel0
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