What do you mean Full Fledged Money Changer (FFMC)?

Answer 1

First and foremost, it is critical to comprehend the meaning of this word. Foreign cash can be purchased from Indian citizens and non-residents by an authorised firm known as a Full Fledged Money Changer (FFMC), who can then sell it only to tourists and business visitors. Section 10 of the Foreign Exchange Management Act 1999 states that only licensed money changers are allowed to operate foreign exchange operations and offer the necessary exchange services in the country. In an effort to lessen the challenges experienced by foreign tourists and visitors, several companies and hotels have also been granted registration to deal in foreign currency notes, coins, and traveler’s checks in compliance with the RBI’s often issued recommendations.

No one is permitted to carry out or market exchange activities without a current exchange licence issued by the RBI. If someone operates an exchange office without a valid license, they risk legal action.

The benefits of FFMC

The benefits of Full Fledged Money Changer are explained below:

Foreign currency sales facilities and services can be provided by an AMC licensee.

An FFMC licensee has the authority to offer collection certificates for foreign currency notes and traveller’s checks from both residents and non-residents.

An FFMC licensee may handle foreign exchange operations for international tourists visiting India.

An AMC licensee may use the current exchange rate to settle foreign currency, coins, and traveller’s checks.