CURRENCY EXCHANGE LICENSE
                     
CURRENCY 
EXCHANGE 
LICENSE
In case you want to start a currency 
exchange business, then you need to know 
every factor in regards to running a 
This Photo by Unknown author is licensed under CC BY successful money exchange business. It is 
.
fundamentally required to attain an FFMC 
License before opening a money exchange 
firm. Let’s put a light on the term FFMC.
INTRODUCTION
  whether you’re cashing checks with physical 
cash or via direct deposit, as well as if 
you’re cashing checks in exchange for gift 
cards. If you’re involved in currency 
exchange, you need a license



WHAT IS FFMC ?
A Full Fledged Money Changer, also known as FFMC, is an authorized entity that has the 
power to purchase foreign exchange from the residents and non-residents of India and 
sell it to the people visiting abroad with the sole purpose of private and business travel. 
 Here are the specifications related to the FFMC license:
As prescribed in Section10 of the Foreign Exchange Market Act, 1999, only authorized 
money changers (AMCs) can deal with the activities of currency exchange.
Nobody has the permit to advertise their money-changing business until they possess a 
valid FFMC license issued by the RBI.
If any individual found guilty of undertaking a money exchange business without having 
a valid license, then he gets liable to be penalized under the Act ibid.
To ease the situation for foreign tourists, RBI has issued directions to particular hotels 
and firms to deal with foreign notes, coins, and cheques.
So the first step towards setting a foreign exchange business in India is to obtain an 
FFMC license, now you must be wondering how to get that license

ELIGIBILITY FOR FFMC LICENSE
You are eligible for FFMC license if you have the following 
characteristics:
Only a registered entity under Companies Act 2013, can apply for an (FFMC) Full Fledged 
Money Changer License.
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.
There should not be any pending criminal or civil cases against your entity with the 
enforcement of DRI (Directorate of Revenue Intelligence).
The object clause of the Memorandum of Association (MOA) must reflect the money 
changing activities that were previously undertaken by your entity.
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.
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NOTE - Your entity will not be 
eligible to obtain an FFMC 
License if any law-enforcing 
authority is pending or 
initiated against it
STEPS FOR OBTAINING FFMC LICENSE
Click to add text
Click to add text
1 2 3 4 5
Submit a complete and The application will get The final decision regarding If you pass every slot under After obtaining the License, 
detailed application for the clearance from the the issue of the license is the ‘fit and proper’ criteria by you need to submit a copy 
FFMC license to the Empowered Committee set always in the hands of RBI. RBI, then you will receive of the registration with any 
concerned regional office of up for the purpose. the Full Fledged Money documentary proof such as 
the Reserve Bank of India. Changer (FFMC) License a copy of lease agreement, 
within a period of 2 to 3 rent receipt etc, to the 
months. Regional Office before 
commencing the business.
OTHER THINGS YOU NEED
List of owners, Business entity 
partners, and documents 
Application fee stockholders, with (articles of work history and Surety bond incorporation, 
background fictitious name 
checks statement)
Landlord’s intent 
Proof of workers’ Personal financial Credit bureau to lease letter, if compensation 
insurance statement report
you are not 
already leasing 
space
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REGISTER AND BOOKS 
REGISTERS AND BOOKS OF ACCOUNTS OF CURRENCY EXCHANGE 
BUSINESS
• Authorized Money Changers shall maintain the following registers regarding their money-changing transactions:
• Everyday’s summary and balance book (Foreign currency coins/notes) in form FLM 1.
• Daily Summary and Balance Book of (Travellers’ cheques) in form FLM 2.
• Foreign currencies purchases from the public in form FLM3.
• Register of purchases of foreign currency coins/notes from authorized money changers and dealers in form FLM 
4.
• Sales of foreign currency coins/notes and foreign currency travelers’ cheques to the public register in form FLM 
5.
• Register of sales of foreign currency coins/ notes to Full Fledged Money Changers / authorized dealers / overseas 
banks in form FLM 6.
• Register of travelers’ cheques surrendered to authorized money changers / authorized dealers in form FLM 7.
• AMCs have to cross-check all the books and registers, ensuring that they are updated from time to time.
• If the AMC maintains more than one money exchange business, then it’s essential to create separate registers 
for the same.
• The books of account and registers should portray a clear picture of transactions about money changing 
business

CONCLUSION 
• There is no shortcut to success; if you seek to run a 
foreign exchange business, then you have to meet all 
the requirements concerning the FFMC license. Effective 
money exchanges are a lucrative opportunity to cease 
huge returns
This Photo by Unknown author is licensed under CC BY-SA-NC.

This Photo by Unknown author is licensed under CC BY.