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Information matrix - comprising of information related to various prudential norms prescribed by Foreign Exchange Department for different regulated entities

Full Fledged Money Changer (FFMC)

Prudential norms for REs

Process and Format for submitting the application

Link to the instructions, if any

a) The applicant has to be a company registered under the Companies Act, 1956/ Companies Act 2013/ Registration of Companies (Sikkim) Act, 1961.

(b) The minimum Net Owned Funds (NOF) required for consideration as FFMC are as follows -

Category	Minimum NOF
Single branch FFMC	Rs.25 lakh
Multiple branch FFMC	Rs.50 lakh

With effect from April 06, 2023, eligible entities desirous of applying fresh FFMC licence/authorisation are required to submit their application through a software application called 'APConnect'.

1. Master Direction on - Money Changing Activities

2. Master Direction – Reporting under Foreign Exchange Management Act, 1999

3. A.P. (DIR Series) Circular No.01 - APConnect - Online application for Full Fledged Money Changers and non-bank Authorised Dealers Category-II, dated April 06, 2023

Fit and proper' criteria for directors of FFMCs / non-bank ADs Category - II

(a) The Boards of FFMCs / non-bank ADs Category - II should undertake a process of due diligence to determine the suitability of the person for appointment / continuing to hold appointment as a director on the Board, based upon qualification, expertise, track record, integrity and other 'fit and proper' criteria. For assessing integrity and suitability, factors like criminal record, if any, financial position, civil action initiated to pursue personal debts, refusal of admission to or expulsion from professional bodies, sanctions imposed by regulators or similar bodies, previous questionable business practices, etc. should be considered. The Board of Directors should assess 'fit and proper' status by calling for information by way of self-declaration, verification reports from market, etc. FFMCs / non-bank ADs Category - II should obtain necessary information and declaration from the proposed / existing directors for the purpose as given in the Master direction on Reporting.

(b) The process of due diligence should be undertaken by the FFMCs / non-bank ADs Category - II at the time of appointment / renewal of appointment.

(c) The Boards of the FFMCs / non-bank ADs Category - II should constitute Nomination Committees to scrutinize the declarations.

(d) Based on the information provided in the signed declaration, Nomination Committees should decide on the acceptance or otherwise and may make references, where considered necessary to the appropriate authority / persons, to ensure their compliance with the requirements indicated.

(e) FFMCs / non-bank ADs Category - II should obtain annually as on 31st March a simple declaration that the information already provided has not undergone change and where there is any change, requisite details are furnished by the directors forthwith.

(f) The provisions of Companies Act 2013 shall apply with regard to the age of the candidate. Further, the candidate should not be a Member of Parliament / Member of Legislative Assembly / Member of Legislative Council.

(g) Any change of directors during the year should be reported to the Regional Office concerned of the Foreign Exchange Department, Reserve Bank of India as given in the Master direction on Reporting.

(h) Comments of respective Departments of the Reserve Bank will be obtained on the operations of an applicant who / whose parent organisation is already licensed / authorised by the Reserve Bank.

Disclaimer: Foreign Exchange Department, Reserve Bank of India issues several operational instructions/ guidelines to the Authorised Persons (APs) for undertaking various forex transactions as per the provisions of the Act/ Rules/ Regulations/ Notifications issued under FEMA 1999 and the same are stipulated in various Master Directions issued by the department from time to time. Accordingly, those instructions/ guidelines are not incorporated into the Information Matrix