Here are the RBI Guidelines for the FFMC license

To conduct any sort of currency exchange business in India, one needs to obtain FFMC license on a mandatory business.

Reserve Bank of India  (RBI) has the task to regulate the terms and conditions of this license and thus, it’s important to understand all the RBI guidelines associated with it.

Section that governs FFMC license

The authorized Money Changers obtain the authorization to conduct their operations via FFMC license under Section 10 of the Foreign Exchange Management ACT, 1999.

What is the meaning of Authorized Money Changers?

When put in simple terms, an Authorized Money Changer is a business entity fully committed to only providing all kinds of currency exchange services. That’s the reason it’s also known as the Full Fledged Money Changer.

The objective of such a business to exist is to increase the access of foreign exchange facilities for tourists and Indian nationals.

To operate as an Authorized Money Changer, one needs to obtain the FFMC license whose conditions the RBI has formulated.

RBI Guidelines pertaining to the issuance of the FFMC license

There are two main conditions RBI has put forth to issue the license to operate as a Full Fledged Money Changer:

  1. The applicant of an FFMC license must be a company that has been incorporated as per Companies Act 2013 or 1956
  2. The net worth requirement of the said company must be as follows:
    1. 25 Lakh rupees for a single branch of FFMC
    2. 50 Lakh rupees for multiple branches of FFMC.

When it comes to net owned funds, RBI calculates it be subtracting owned funds from:

  1. The number of investments in shares of its subsidiaries
  2. number of investment in companies of the same group
  3. Number of investments in banks and NBFCs
  4. Outstanding loans
  5. Advanced deposits made


For applying for the license

The applicant for the FFMC license online must do so under section 10 of the FEMA act. The documents required are as follows:

  1. Certificate of incorporation
  2. Memorandum of Association
  3. Articles of Association
  4. Copies of the latest audited balance sheets
  5. Applicant banker’s confidential report
  6. Declaration stating that the applicant is not on the receiving end of any criminal investigation.
  7. Confidential report from the bank
  8. KYC Declaration
  9. Copy of board resolution to start money exchange business.

The conditions that come along side the FFMC license

When the RBI issues the FFMC license, it expects the applicant to comply with the following:

  1. It has comply with all the requirements mentioned in the regulations for the Full Fledged Money Changer certification
  2. The applicant and the director of the company must meet the FIT and PROPER criteria
  3. An empowered committee should clear the applicant to start money changing business
  4. It’s important that applicant considers RBI’s decision of approving or rejecting the license as the final one.
  5. After the license is issued, the applicant has to submit documents pertaining to the proof of place of business. They include one of the following:
    1. Lease agreement
    2. Rent agreement
    3. Sale agreement

Unless the above are submitted, the applicant won’t have the permission to start their business.

  1. The applicant must start the business within 6 months of getting the FFMC license. IF they can’t, RBI would ask them for the reason by sending them a Show cause notice.


FFMC license comes with many caveats. You need to fulfil all of them to start your money exchange business. In this article, we have considered you an applicant of this license and have provided you a comprehensive guide to obtain the license and maintain your hold over it.

Want to know more about FFMC license? Consult with Registrationwala. We are just one call away.

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