FFMC License Registration in India is mandatory for businesses that want to legally deal in foreign exchange such as buying and selling foreign currency, traveller’s cheques, and prepaid forex cards. The license is issued by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA), 1999.
In this Saving Mantra guide, we explain what an FFMC license is and provide a step-by-step process for FFMC License Registration in India in a simple and compliance-focused manner.
What is an FFMC License?
A Full Fledged Money Changer (FFMC) License authorizes an entity to undertake foreign exchange activities such as:
- Buying foreign currency from residents or tourists
- Selling foreign exchange for travel and business purposes
- Issuing prepaid forex cards
Without an FFMC license, dealing in foreign currency is illegal in India.
Types of Money Changer Licenses in India
1. Full Fledged Money Changer (FFMC)
- Can buy and sell foreign exchange
- Issued by RBI
2. Authorized Dealer (AD)
- Issued mainly to banks
- Wider forex transaction permissions
3. Restricted Money Changer
- Limited to specific activities (mostly franchise-based)
Eligibility Criteria for FFMC License Registration
To apply for an FFMC license:
- Applicant must be a company registered under Companies Act, 2013
- Minimum Net Owned Fund (NOF) of ₹25 lakh (single branch)
- ₹50 lakh NOF for multiple branches
- Clean financial track record
- Fit and proper management
Benefits of FFMC License Registration
- Legal authorization to deal in foreign exchange
- High credibility and trust with customers
- Ability to expand forex services across locations
- Access to growing travel and forex market
- Compliance with RBI and FEMA regulations
Step-by-Step Process for FFMC License Registration in India
Step 1: Company Incorporation
Incorporate a Private Limited or Public Limited Company with money changing as one of the main objectives.
Step 2: Ensure Minimum Net Owned Fund
Arrange and certify the required NOF through audited financial statements and CA certificate.
Step 3: Prepare Business Plan
Draft a detailed business plan covering:
- Nature of forex activities
- Branch expansion plan
- Risk management and AML policy
Step 4: Compile Required Documents
Collect statutory documents, declarations, and financial records required by RBI.
Step 5: Submit Application to RBI
File the FFMC license application with RBI’s regional office along with supporting documents.
Step 6: RBI Due Diligence
RBI reviews promoter background, financial soundness, internal controls, and compliance readiness.
Step 7: Grant of FFMC License
Upon satisfaction, RBI issues the FFMC License, allowing the company to commence forex operations.
Documents Required for FFMC License Registration
- Certificate of Incorporation
- MOA & AOA
- Audited financial statements
- Net Owned Fund certificate
- Business plan and projections
- Director KYC documents
- Board resolution for FFMC application
Post FFMC License Compliance
- Adherence to FEMA guidelines
- Periodic reporting to RBI
- Maintenance of forex transaction records
- KYC and Anti-Money Laundering (AML) compliance
- Regular internal and statutory audits
Penalty for Operating Without FFMC License
Unauthorized foreign exchange dealings may lead to heavy penalties, cancellation of business, and prosecution under FEMA.
Why Choose Saving Mantra for FFMC License Registration?
- Expert guidance on RBI regulations
- Accurate documentation and application filing
- End-to-end liaison with RBI
- Transparent and affordable pricing
- Ongoing compliance and advisory support
Conclusion
FFMC License Registration in India is a highly regulated but rewarding opportunity for businesses entering the foreign exchange market. By following the correct step-by-step FFMC registration process, companies can operate legally and build a trusted forex business. Saving Mantra ensures a smooth, compliant, and professional FFMC license registration experience.
Disclaimer
The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. FFMC licensing norms, capital requirements, and RBI guidelines may change from time to time. Readers are advised to consult qualified professionals before applying for an FFMC license or starting foreign exchange operations.