As per the provisions of Section 10 of the Foreign Exchange Management Act, 1999, authorized money changers are the only entities in India dealing in money changing activities and providing the necessary foreign exchange services.

Types of FFMC License :

1. Authorised Dealer Category -I Banks (AD Category–I Banks),
2. Authorised Dealers Category - II (ADs Category–II) and,
3. Full Fledged Money Changers (FFMCs).

Regulatory Framework for FFMC License :

* Step 1: Guidelines for issue of new FFMC license.
* Step 2: Renewal of FFMC license.
* Step 3: branch licensing.
* Step 4: approval for the appointment of agents/franchisees and.
* Step 5: Know Your Customer (KYC) / Anti Money Laundering (AML).
* Step 6: Combating of Financing of Terrorism (CFT) and.
* Step 7: Guidelines for Authorized Persons (AP).

Required Document :

Step 1: Copy of the Certificate of Incorporation.
Step 2: Memorandum and Articles of Association containing a provision for undertaking money changing business or an appropriate amendment to this effect.
Step 3: Copy of the latest audited accounts with a certificate from the Statutory Auditors certifying the Net Owned Funds as on the date of application.
Step 4: Copies of the audited Balance Sheet and Profit & Loss Account of the company for the last three years, wherever applicable.
Step 5: Confidential Report from the applicant's banker in a sealed cover.
Step 6: A certified copy of the board resolution for undertaking money changing business.