Summary: Article explains the regulatory framework governing Full-Fledged Money Changers (FFMCs) under the Foreign Exchange Management Act, 1999, and highlights the changes introduced by the Foreign Exchange Management (Authorised Persons) Regulations, 2026. It states that fresh standalone FFMC applications are generally no longer considered, except for applications already under process under the transitional provisions, while existing FFMCs may continue operations and seek renewal subject to revised net-worth, turnover, fit-and-proper and compliance requirements. The article describes the activities permitted to an FFMC, eligibility conditions for pending applications, the renewal process, post-authorisation compliances including KYC, AML, record maintenance, FLM-8 reporting, annual financial reporting, concurrent audit and reporting obligations, and explains the Forex Correspondent model as an alternative for new businesses. It also outlines common reasons for rejection or regulatory action, including insufficient net worth, incomplete documentation, adverse enforcement proceedings, weak compliance systems, failure to meet turnover requirements, non-filing of RBI returns and undertaking transactions beyond the permitted scope.
The foreign exchange industry plays an important role in supporting international travel, tourism, overseas business visits and other permitted cross-border activities. Indian residents travelling abroad may need foreign currency, while foreign tourists and non-resident Indians visiting India may need to convert foreign currency into Indian rupees. Foreign currency cannot be purchased or sold commercially by an ordinary company without regulatory authorisation.
Under the Foreign Exchange Management Act, 1999, an entity must be authorised by the Reserve Bank of India before undertaking money-changing activities. A company authorised to purchase and sell foreign currency for specified purposes is commonly known as a Full-Fledged Money Changer, or FFMC. However, the regulatory framework governing FFMCs was substantially revised in 2026. Therefore, businesses must understand the current regulatory position before planning to apply for an FFMC Licence.
What Is an FFMC Licence?
A Full-Fledged Money Changer Licence is an authorisation granted by the Reserve Bank of India under Section 10(1) of the Foreign Exchange Management Act, 1999. It permits the authorised entity to undertake specified foreign exchange transactions in accordance with RBI regulations, directions and the conditions mentioned in its authorisation. An FFMC acts as a regulated intermediary between customers and the formal foreign exchange market.
It may purchase foreign currency from eligible persons and sell foreign currency to travellers for permitted purposes. An FFMC cannot undertake every type of foreign exchange transaction. Its activities are restricted to the transactions expressly permitted by the RBI. Undertaking unauthorised money-changing activities may result in penalties under FEMA, cancellation of regulatory approval and other enforcement action.
Important Regulatory Update for FFMC Applications in 2026
Fresh FFMC Applications Are No Longer Considered
Under the Foreign Exchange Management (Authorised Persons) Regulations, 2026, the RBI does not consider fresh applications for authorisation as an FFMC. The only exception applies to FFMC applications that were already under process when the new regulations came into force.
This means that a newly incorporated company cannot presently apply for a fresh standalone FFMC Licence under the earlier licensing framework. Fresh authorisations are now considered under the categories of Authorised Dealer Category-I, Authorised Dealer Category-II and Authorised Dealer Category-III, subject to their respective eligibility conditions.
Treatment of Applications Already Under Process
Applications that were already being processed on the effective date of the 2026 regulations may still be considered under the transitional provisions. Where the RBI had requested additional documents or information in relation to such an application, the applicant was required to provide the requested information within the period specified under the regulations. Failure to provide the information within the prescribed period could result in the application being treated as rejected.
Existing FFMCs May Continue and Seek Renewal
An entity already operating as an FFMC may continue its activities until the expiry of its existing authorisation. It may apply for renewal by satisfying the revised net-worth, fit-and-proper and other continuing eligibility requirements. The renewal application must be submitted at least two months before the expiry of the existing licence. When a complete renewal application is submitted within the prescribed period, the existing authorisation may continue until the RBI approves or rejects the renewal application.
Objectives of Regulating Money-Changing Activities
Prevention of Unauthorised Foreign Exchange Transactions
The RBI authorisation system ensures that foreign currency transactions are undertaken only through recognised and regulated entities. This helps prevent unauthorised dealing, informal currency markets and transactions that may violate FEMA.
Protection of Customers
Customers dealing with an authorised FFMC receive transaction records, encashment certificates, receipts and transparent exchange-rate information. These requirements reduce the possibility of fraud, incorrect conversion rates and misuse of customer funds.
Prevention of Money Laundering
Money-changing businesses deal with cash and cross-border financial instruments. Such activities may be vulnerable to money laundering, terrorist financing and unlawful movement of funds. FFMCs are therefore required to maintain appropriate Know Your Customer, Anti-Money Laundering and Combating Financing of Terrorism controls.
Maintenance of Transaction Records
The RBI requires authorised persons to maintain clear records of foreign currency purchased and sold. These records allow regulators, auditors and law-enforcement authorities to trace transactions and verify whether the business has complied with FEMA and RBI directions.
Activities Permitted to an FFMC
Purchase of Foreign Currency
An FFMC may purchase foreign currency notes and travellers’ cheques from residents and non-residents, subject to customer identification, transaction documentation and other conditions prescribed by the RBI. For example, a foreign tourist visiting India may exchange foreign currency for Indian rupees through an FFMC. Similarly, an Indian resident returning from abroad may sell unused foreign currency to an authorised money changer.
Sale of Foreign Currency for Foreign Travel
An FFMC may sell foreign currency notes and travellers’ cheques to eligible persons travelling outside India. Foreign currency may generally be provided for permitted foreign travel, including private visits and business travel. The customer must submit the required travel documents, identification details and declarations relating to the amount and purpose of foreign exchange.
Functioning as an Agent under MTSS
An FFMC may function as an agent under the Money Transfer Service Scheme where it has obtained the necessary authorisation and complies with the separate guidelines applicable to inward personal remittances. Holding an FFMC authorisation does not automatically permit the entity to undertake all MTSS activities. The business must comply with the specific approval and operational requirements applicable to the scheme.
Restrictions on FFMC Activities
An FFMC cannot undertake all current-account or capital-account transactions. It cannot function in the same manner as an Authorised Dealer Category-I bank. Under the 2026 regulations, the permitted FFMC activities include purchasing foreign currency notes and travellers’ cheques, selling them for foreign travel purposes and functioning as an MTSS agent in accordance with the applicable guidelines.
Difference Between an FFMC and an Authorised Dealer Category-II
Scope of an FFMC
The scope of an FFMC is primarily limited to the purchase of foreign currency and its sale for permitted foreign travel purposes. Its operations are therefore more restricted than those of an Authorised Dealer.
Scope of an Authorised Dealer Category-II
An Authorised Dealer Category-II may undertake permitted non-trade current-account transactions, other than gifts and donations. It may also undertake permitted foreign trade transactions up to the monetary limit prescribed under the regulations.
An eligible FFMC or Forex Correspondent may apply for Authorised Dealer Category-II status after operating for at least two years and achieving an average annual forex turnover of ₹50 crore during the preceding two financial years. Such an applicant must also satisfy the prescribed minimum net-worth and fit-and-proper requirements.
Eligibility Requirements for Pending FFMC Applications
The following eligibility requirements principally apply to FFMC applications that were already under process when the 2026 regulations came into force.
Incorporation as a Company
The applicant must be incorporated as a company under the Companies Act. A sole proprietorship, partnership firm or limited liability partnership cannot independently obtain an FFMC authorisation under the legacy framework. A proper corporate structure is required because the RBI examines the applicant’s ownership, management, financial position and governance arrangements.
Appropriate Object Clause
The Memorandum of Association of the applicant company must contain an object permitting it to undertake money-changing or foreign exchange-related activities.
Where the existing object clause does not cover the proposed business, the company must amend its Memorandum of Association in accordance with the Companies Act before proceeding with the regulatory application.
Minimum Net Owned Funds
A single-branch FFMC applicant was required to maintain minimum Net Owned Funds of ₹25 lakh. An applicant proposing to operate through more than one branch was required to maintain minimum Net Owned Funds of ₹50 lakh. The amount should be reflected in the company’s actual financial position and should not merely represent its authorised share capital. The Net Owned Funds position must be certified by the statutory auditor.
Calculation of Owned Funds
Owned Funds generally include paid-up equity capital, free reserves and the credit balance in the Profit and Loss Account. Accumulated losses, deferred revenue expenditure and intangible assets are deducted while determining the amount of Owned Funds.
Calculation of Net Owned Funds
Net Owned Funds are calculated after making further deductions from Owned Funds. The deductions may include specified investments in subsidiaries or group companies, investments in other non-banking financial companies and certain loans, advances, debentures, bonds and deposits involving group entities that exceed the permitted limit. The applicant should obtain a detailed certificate and calculation sheet from its statutory auditor to demonstrate compliance with the minimum requirement.
Fit-and-Proper Status
The applicant company, its promoters, directors and key managerial personnel must be fit and proper. The RBI may examine their integrity, reputation, financial soundness, qualifications, professional experience, regulatory history and involvement in criminal or enforcement proceedings. Under the 2026 framework, at least 50% of the directors and key managerial personnel of an applicant under the relevant authorisation categories must possess qualifications and experience in the financial services industry.
Absence of Disqualifying Proceedings
The company and its directors must disclose whether any proceedings have been initiated or are pending before the Directorate of Enforcement, Directorate of Revenue Intelligence or any other law-enforcement authority. Pending serious enforcement or criminal proceedings may adversely affect the fit-and-proper assessment and may result in rejection of the application.
Suitable Business Premises
The applicant must have suitable commercial premises from which the money-changing activity can be conducted. The premises should have adequate customer-service facilities, storage arrangements, security controls, accounting systems, surveillance arrangements and trained employees.
The applicant may be required to produce a lease deed, rent agreement, ownership document, Shops and Establishments registration or other evidence showing its lawful possession of the premises.
Proper Internal Controls
The company should have written procedures governing customer identification, transaction verification, cash handling, exchange-rate approvals, storage of foreign currency, record maintenance and regulatory reporting. The RBI may also examine whether duties are appropriately divided among employees and whether the company has mechanisms to prevent fraud, manipulation and unauthorised transactions.
Documents Required for an FFMC Application
Corporate Documents
The applicant must provide its Certificate of Incorporation, Memorandum of Association and Articles of Association. The Memorandum of Association should specifically permit the company to undertake money-changing or foreign exchange-related activities. Where the object clause has been amended, the approved amended documents and relevant corporate filings should also be provided.
Financial Documents
The company must submit its latest audited financial statements along with the Balance Sheet and Profit and Loss Account for the preceding financial years, wherever applicable. A statutory auditor’s certificate confirming the Net Owned Funds as on the date of application is also required. The certificate should clearly explain the manner in which the amount has been calculated.
Banker’s Confidential Report
A confidential report from the applicant’s banker may be required. The report assists the RBI in examining the company’s banking conduct, account operations, financial discipline and general credibility.
Board Resolution
The company must pass a Board resolution approving the proposal to undertake money-changing activities. The resolution should authorise the company to submit the RBI application and should identify the director or authorised representative responsible for signing and filing the application.
Promoter and Director Documents
The applicant should provide identification details, educational qualifications, professional experience and business background of its promoters, directors and key managerial personnel. Declarations relating to integrity, criminal proceedings, regulatory actions, directorships and financial-sector experience may also be required.
Enforcement-Related Declaration
A declaration should be submitted stating whether proceedings are pending against the applicant company, its promoters or directors before the Directorate of Enforcement, Directorate of Revenue Intelligence or any other law-enforcement authority. The declaration must be accurate and complete. Concealment of a material investigation may result in rejection or subsequent cancellation of the authorisation.
KYC, AML and CFT Policy
The applicant should prepare a detailed policy covering customer acceptance, customer identification, beneficial ownership, risk classification, transaction monitoring, suspicious transaction identification and record retention. The policy should also define the responsibilities of the Board, principal officer, compliance team and operational employees.
Group-Entity Details
The applicant must disclose details of its subsidiary, associate, sister and group concerns, particularly entities operating in banking, lending, insurance, securities, remittance or other financial activities. This information enables the RBI to evaluate the applicant’s group structure and potential financial or compliance risks.
Business Plan
A detailed business plan should explain the proposed business model, target customers, expected transaction volume, proposed currencies, estimated turnover, branch structure, sources of foreign currency and staffing arrangements. The plan should be commercially realistic and should demonstrate that the company has sufficient resources to operate a regulated money-changing business.
Premises and Infrastructure Documents
The applicant may be required to provide the lease deed, rent agreement, ownership papers, Shops and Establishments registration and photographs of the business premises. Details of cash safes, surveillance systems, counterfeit-note detection arrangements and information-technology systems may also be included.
Process for Pending FFMC Licence Applications
Step 1: Conduct an Eligibility Review
The company should first confirm that its application was already under process when the 2026 regulations came into force. A company that had not filed its application before the new framework became effective cannot submit a fresh FFMC application. The company should also verify whether its corporate structure, object clause, financial position and management satisfy the applicable transitional requirements.
Step 2: Verify Net Owned Funds
The statutory auditor should calculate the company’s Net Owned Funds in accordance with the prescribed formula. Any inadmissible investments, intangible assets, accumulated losses or group-company exposures should be properly deducted. Where the amount falls below the prescribed minimum, the company may need to strengthen its financial position before the application can be considered.
Step 3: Prepare the Regulatory Documents
The applicant should compile the corporate documents, audited financial statements, statutory auditor’s certificate, Board resolution, KYC policy, business plan and promoter declarations. All documents should contain consistent information. Differences in the company’s registered office, capital structure, director details or financial figures should be resolved before submission.
Step 4: Respond to RBI Clarifications
Where the RBI has raised a query or requested additional information in relation to a pending application, the company must provide a complete response within the prescribed period. The response should address every point raised by the RBI and should be supported by appropriate evidence. An incomplete or delayed response may result in rejection of the application.
Step 5: Fit-and-Proper Assessment
The RBI examines whether the company and the persons managing it are fit and proper to undertake foreign exchange activities. The assessment may cover qualifications, integrity, regulatory history, enforcement proceedings, financial soundness and professional experience.
Step 6: Examination by the RBI
The concerned RBI Regional Office may examine the application, supporting records and additional clarifications. Under the legacy procedure, applications could also be considered based on clearance from an Empowered Committee. The RBI’s decision is based on regulatory compliance, public interest and the overall suitability of the applicant.
Step 7: Grant of Approval
Where the RBI is satisfied with the application, it may grant authorisation subject to specified conditions. Approval is not automatic merely because the company satisfies the minimum financial requirement. The RBI may impose operational, reporting, governance or location-related conditions.
Step 8: Commencement of Business
After approval, the company must complete the applicable local registrations, establish its operational systems and commence business within the time allowed by the RBI. The entity must conduct only those activities that are permitted under its authorisation.
Renewal Process for an Existing FFMC Licence
Step 1: Check the Expiry Date
An existing FFMC should review the validity period mentioned in its authorisation. The renewal application should be filed at least two months before the date of expiry. Delaying the application may create a risk of interruption in business operations.
Step 2: Verify Minimum Net Worth
A single-branch FFMC must maintain a minimum net worth of ₹25 lakh, while a multiple-branch FFMC must maintain a minimum net worth of ₹50 lakh for renewal. The net-worth position should be supported by the latest audited Balance Sheet and a certificate from the statutory auditor.
Step 3: Check the Annual Forex Turnover
Under the 2026 regulations, an FFMC must achieve a minimum annual forex turnover of ₹10 crore within two years from the commencement of the new regulations or commencement of the forex business, whichever is later. After achieving the required turnover, the FFMC must maintain it on an ongoing basis. The turnover is calculated with reference to foreign exchange purchased from and sold to the public, excluding the value of inward remittances processed.
Step 4: Review Management Eligibility
The company should conduct a fresh fit-and-proper review of its promoters, directors and key managerial personnel. Changes in management, criminal proceedings, regulatory action, disqualifications or investigations must be identified and disclosed.
Step 5: Prepare Renewal Documents
The renewal documentation may include the existing RBI authorisation, latest audited accounts, statutory auditor’s net-worth certificate, forex-turnover certificate, banker’s confidential report, Board resolution and updated KYC policy. The company may also be required to provide information about branches, customer complaints, regulatory returns, concurrent audits and enforcement proceedings.
Step 6: Submit the Renewal Application
The application must be submitted to the RBI through the electronic portal or system prescribed for the relevant filing. The application is routed to the RBI Regional Office having jurisdiction over the company’s registered office.
Step 7: Respond to RBI Queries
The RBI may seek explanations regarding the company’s net worth, turnover, audit observations, transaction records, customer complaints or compliance failures. The FFMC should provide clear and evidence-based responses within the time specified by the RBI.
Step 8: Grant or Rejection of Renewal
The RBI may renew the authorisation, impose additional conditions or reject the application. An application may be rejected where it contains incorrect or misleading information, the applicant does not satisfy eligibility requirements, relevant persons are not fit and proper or renewal is not considered to be in the public interest.
Post-Authorisation Compliances for an FFMC
Maintenance of Minimum Net Worth
The FFMC must maintain the prescribed minimum net worth continuously. Where the net worth falls below the required amount, the entity must restore it within six months or within any additional period permitted by the RBI. Failure to restore the minimum amount may result in revocation of the authorisation.
Maintenance of Minimum Forex Turnover
An FFMC must achieve and maintain the minimum annual forex turnover of ₹10 crore within the period prescribed under the 2026 regulations. The company should regularly review its turnover because continued failure to satisfy the requirement may affect its authorisation.
KYC and Customer Due Diligence
The FFMC must verify the identity of its customers and obtain the documents required for the relevant transaction. The nature of the documentation may depend on whether the customer is a resident, foreign visitor, non-resident Indian or person travelling outside India.
Anti-Money Laundering Controls
The FFMC must implement procedures to detect unusual, structured or suspicious transactions. Transactions that appear inconsistent with the customer’s profile or lack a legitimate economic purpose should be examined and reported where required under applicable anti-money laundering laws.
Payment for Sale of Foreign Exchange
Cash may be accepted for the sale of foreign exchange for travel abroad only where the value is below ₹50,000. Where the value is ₹50,000 or more, payment must generally be received through permitted banking channels or approved card-based modes, subject to KYC requirements.
Display of Exchange Rates
The FFMC should prominently display the purchase and sale rates for major foreign currencies at or near the customer counter. The rate chart should be updated within the period prescribed by the RBI so that customers receive transparent information before completing a transaction.
Display of RBI Authorisation
A copy of the RBI money-changing authorisation should be displayed prominently at every place from which the FFMC conducts business. This enables customers to verify that the entity is authorised to undertake foreign exchange transactions.
Maintenance of Books and Records
The FFMC must maintain accurate and updated records of foreign currency purchased, foreign currency sold, customer identification, payment method and supporting documents. Foreign exchange transactions should be separately identifiable from the company’s other business transactions. The records should provide a clear audit trail and should be available for RBI inspection.
FLM-8 Monthly Return
FFMCs are required to submit a consolidated monthly statement in Form FLM-8 through APConnect. The return contains information relating to the purchase and sale of foreign currency notes, including prescribed information on foreign currency notes written off. It must generally be submitted by the tenth day of the succeeding month.
Annual Financial Reporting
An FFMC must submit its annual audited Balance Sheet along with a statutory auditor’s certificate confirming its net worth by October 31 every year. A statutory auditor’s certificate regarding the annual forex turnover for the financial year must generally be submitted by April 30 every year.
Concurrent Audit
Every FFMC must establish an appropriate concurrent-audit mechanism. A single-branch FFMC with monthly turnover exceeding USD 100,000 or its equivalent should generally undertake monthly concurrent audits. A single-branch FFMC with turnover up to that amount may undertake quarterly audits. For a multiple-branch FFMC, the audit framework should cover 80% of transaction value through monthly audits and the remaining 20% through quarterly audits.
Sale-to-Public Requirement
The value of foreign currency notes sold by an FFMC to the public for permitted purposes should not be less than 75% of the value of foreign currency notes purchased from other FFMCs or Authorised Dealers, calculated on a quarterly basis. The company must maintain supporting purchase and sale records for audit and regulatory inspection.
Reporting Changes in Management
An authorised person must obtain prior RBI approval before making specified changes in management, control or ownership exceeding 50%. Changes in directors or key managerial personnel, and developments affecting their fit-and-proper status, must also be reported within the applicable period.
Reporting New Business Locations
An FFMC may conduct permitted activities from different places of business. A non-bank authorised person must submit information through APConnect regarding the commencement of business from a new location, closure of a business location or shifting of the registered office within the periods prescribed under the regulations.
RBI Inspection
The RBI may inspect the books, accounts, documents and transaction records of an FFMC. The company must provide complete assistance to the inspecting officers. Failure to produce records or provide the requested information may be treated as a contravention of FEMA.
Forex Correspondent Scheme for New Entrants
Meaning of a Forex Correspondent
A Forex Correspondent is an entity appointed as an agent of an Authorised Dealer Category-I or Authorised Dealer Category-II under a principal-agent arrangement. It does not hold an independent FFMC Licence. Its money-changing activities are undertaken under the supervision and regulatory authorisation of its principal Authorised Dealer.
Activities of a Forex Correspondent
A Forex Correspondent may be permitted to purchase foreign currency notes, coins and travellers’ cheques. It may also be permitted to sell foreign currency for foreign travel and function as an MTSS sub-agent, subject to the internal policy and authorisation of its principal.
Responsibility of the Principal
The principal Authorised Dealer is responsible for conducting due diligence on the Forex Correspondent. It must establish requirements relating to net worth, systems, internal controls, customer service, transaction reporting, charges and grievance redressal. The principal must also ensure that transactions undertaken by the correspondent are properly reflected in its books of account.
Alternative for New Businesses
As fresh FFMC applications are no longer considered, the Forex Correspondent model is an important alternative for companies wishing to enter the retail money-changing sector. The company must identify a suitable Authorised Dealer and satisfy the principal’s commercial, operational and compliance requirements.
Discontinuation of the Earlier Franchisee Model
The 2026 regulations prohibit authorised persons from entering into fresh franchisee arrangements under the earlier money-changing franchise structure. Franchise arrangements that were valid when the new regulations came into force must be discontinued within two years. Eligible franchisees may subsequently be appointed as Forex Correspondents in accordance with the new scheme.
Common Reasons for Rejection or Regulatory Action
- Insufficient Net Worth: An application or renewal may be rejected where the applicant fails to maintain the prescribed minimum net worth or provides an incorrect calculation.
- Incomplete Documents: Missing financial statements, unsigned declarations, inconsistent corporate records or incomplete promoter information may delay or adversely affect the application.
- Adverse Enforcement Proceedings: Serious proceedings involving the applicant, its promoters or directors may result in an adverse fit-and-proper assessment.
- Weak KYC and AML Systems: An inadequate customer-identification or transaction-monitoring framework may indicate that the applicant is not prepared to operate a regulated foreign exchange business.
- Failure to Meet Turnover Requirements: An existing FFMC that does not achieve or maintain the prescribed annual forex turnover may face regulatory action.
- Incorrect or Misleading Information: Providing false, incorrect or misleading information to the RBI is a serious matter and may result in rejection, revocation and further regulatory action.
- Non-Filing of RBI Returns: Failure to submit FLM-8 returns, annual financial statements, net-worth certificates or other prescribed reports may affect the continuation of the authorisation.
- Transactions beyond the Permitted Scope: An FFMC must not undertake outward remittances, trade transactions or other foreign exchange activities that are outside the scope of its authorisation.
Conclusion
An FFMC Licence permits an eligible company to carry out specified money-changing activities under the supervision of the Reserve Bank of India. It enables the authorised entity to purchase foreign currency from eligible customers and sell foreign exchange for permitted foreign travel purposes. Such operations must be conducted in accordance with RBI directions relating to customer identification, KYC and AML checks, transaction reporting, maintenance of records, internal controls, concurrent audit and regulatory inspection.
Following the regulatory changes introduced in 2026, fresh standalone FFMC applications are generally no longer accepted, except those already under consideration when the revised framework became effective. Existing FFMCs may continue operations and seek renewal after meeting the prescribed net-worth, turnover, fit-and-proper and compliance conditions. New businesses may explore the Forex Correspondent model.
Frequently Asked Questions
Q1. Is the RBI Accepting Fresh FFMC Licence Applications?
Ans. No. Under the Foreign Exchange Management (Authorised Persons) Regulations, 2026, fresh applications for FFMC authorisation are not considered. Only applications that were already under process when the regulations came into force may be considered under the transitional provisions.
Q2. Can a Proprietorship Obtain an FFMC Licence?
Ans. No. An FFMC applicant under the applicable legacy framework must be a company. A proprietorship, partnership firm or LLP cannot independently hold the authorisation.
Q3. What Is the Minimum Net Worth for an Existing FFMC?
Ans. An existing single-branch FFMC must maintain a minimum net worth of ₹25 lakh. A multiple-branch FFMC must maintain a minimum net worth of ₹50 lakh.
Q4. What Is the Minimum Annual Forex Turnover?
Ans. An FFMC is required to achieve and maintain minimum annual forex turnover of ₹10 crore within the period prescribed by the 2026 regulations.
Q5. Can an FFMC Sell Foreign Currency?
Ans. Yes. An FFMC may sell foreign currency notes and travellers’ cheques for permitted foreign travel purposes, subject to RBI directions, customer eligibility and documentation requirements.
Q6. Can an FFMC Undertake All Outward Remittances?
Ans. No. An FFMC can undertake only the activities expressly permitted under its authorisation. It cannot conduct every category of outward remittance or foreign trade transaction.
Q7. When Should an Existing FFMC Apply for Renewal?
Ans. The renewal application should be submitted at least two months before expiry of the existing authorisation.
Q8. What Is the Alternative to a Fresh FFMC Licence?
Ans. A new business may explore appointment as a Forex Correspondent of an Authorised Dealer Category-I or Authorised Dealer Category-II.
Q9. Can an FFMC Open Multiple Locations?
Ans. An FFMC may conduct permitted activities from multiple places of business, but commencement or closure of business at such locations must be reported through APConnect within the prescribed period.
Q10. Is FFMC Registration Approval Guaranteed?
Ans. No. RBI authorisation is discretionary and depends on eligibility, financial position, management suitability, regulatory compliance and public-interest considerations.
