Regional Director Dr Sathyan David Reserve Bank of India - RBI Jaipur and Team conduct First Time Ever workshop cum interactive session on ForEx Management at Bhilwara on 26 Aug 2013 in which Mewar Chamber of Commerce officials, Importers & Exporters, Charted Accountants & Company Secretaries, officials from Lead Banks, Vice Chancellor along with a team of MBA Faculty from Sangam University actively participated in the proceedings. Sri CD Srinivasan Chief General Manager from RBI Mumbai conducted the FEMA session including Derivatives with Clinical Precision. Ms Sunanda Batra from RBI Jaipur proposed vote of thanks and Sri ML Meena from RBI Jaipur anchored the proceedings.

1. FED,CO,RBI
FEMA EVENT AT BHILWARA
26 AUGUST 2013
FULL FLEDGED MONEY
CHANGERS(FFMC)

2. Money Changing Activities in India
 Authorised Persons under Section 10(1) of
FEMA, 1999 : ADs Cat-I, ADs Cat-II, ADs Cat-III,
FFMCs.
 FFMCs: Should be a corporate body. Minimum
NOF of INR 25/50 lakh for single/multiple branch
 ‘Fit & Proper’ Criteria for FFMCs, Non-bank ADs
Cat-II and their directors
 Empowered Committee at RO level for licencing/
renewal of FFMCs

3. Agents/ Franchisees of FFMCs
 ADs Cat-I, ADs Cat-II, FFMCs can appoint
agents/ franchisees which can undertake
restricted money-changing activities.
 Franchisees: Minimum NOF of INR 10 lakh
 Due diligence of franchisees by franchisers
 Franchisees should display the names of their
franchisers, exchange rates and they are
authorised only to purchase foreign currency.

4. Operational Instructions
 Mandatory production of CDF
 Sale of forex: Private visit: USD 10,000 per
financial year, Business visit: USD 25, 000 per
visit.
 ADs Cat-II can issue forex pre-paid cards for
travel purpose
 Reconversion of INR to Fcy from non-residents:
No Encashment certificate upto INR 10,000
 Rates of Exchange: Should be in alignment with
ongoing market rates
 Display of Exchange Rate: Card rates by 10:30

5. O Operational Instructions
 Foreign Currency Balances: No idle balances
 Export of Fcy: General permission to FFMCs
thorough an AD Cat-I bank
 Import of Fcy by FFMCs through an AD Cat-I bank:
specific permission from RBI
 Write off of Fcy: up to USD 2000 per financial year-
general permission, anything above-specific
permission from RBI.
 Registers and books of accounts: FLM-1 to 7
 Statements to RBI: FLM-8 (monthly), Details of Fcy
accounts (quarterly), amounts written off(annual)

6. O Operational Instructions
 Concurrent Audit: Single branch FFMCs with turnover
of more than USD 1 lakh and all multiple branch
FFMCs: monthly
Single branch FFMCs with turnover of less than USD
1 lakh: quarterly
 Temporary money changing activities: with specific
permission from RBI
 Opening of Fcy accounts: with specific permission
from RBI for specific purposes
 Maintenance of minimum NOF on an ongoing basis
 KYC/AML/CFT Guidelines

7. KYC / AML guidelines
APs brought under the ambit of PMLA, 2009
(amendment) wef June 1, 2009
The objective is to prevent the system of
purchase and / or sale of foreign currency notes
/ Travelers' cheques by AP from being used,
intentionally or unintentionally by criminal
elements for money laundering or terrorist
financing activities.
KYC procedures also enable APs to
know/understand their customers and their
financial dealings better which in turn help them
manage their risks prudently.

8. No transaction is conducted in anonymous or
fictitious/benami name(s)
Maintaining and updating the risk profile of every
customer
 Documentation requirements and other information to
be collected in respect of different categories of
customers depending on perceived risk and keeping in
mind the requirements of Prevention of Money
Laundering Act
 Not to undertake any transaction where the AP is
unable to apply appropriate customer due diligence
Cont..

9. Cont..
• Details of identification documents- for purchase of
forex by customers less than INR 50000, for amounts
equal to or more than INR 50000, properly verified
identification documents to be kept.
• Encashment of forex- payment to residents in INR cash
up to US $1000, foreign visitors/ NRIs up to US $3000
(all transactions within 30 days as single transaction).
Production of CDF is mandatory.
• For sale of Forex, passport should be insisted and copy
of identification document should be kept.