This document provides information on foreign exchange money changing and regulations in India. It discusses the factors that affect exchange rates, the types of entities authorized to deal in foreign exchange, and the rules regarding purchasing, selling, and transporting foreign currency. It also outlines the various reports that must be filed related to foreign exchange transactions.

1. Foreign Exchange Money Exchange Cambio Bureau De Change

2. Introduction Rules and Regulations Money Changing Business General Alertness Exploring the Market

3. What is Foreign Exchange…?

4. Exchange Rate ..? The rate at which one currency may be converted into another currency.

5. Factors Affecting Exchange Rates… Demand & supply. Policy decision by Government. Share market movements. War, civil unrest Etc. Natural calamity

6. F oreign E xchange M anagement A ct. Reserve Bank of India

7. We are Authorised Dealer Category II , licensed by Reserve Bank of India and controlled by them, exercising the powers imbibed in the foreign exchange management act of 1999. Our license is a unified AD license issued from RBI Bangalore, where our registered office is situated

8. Authorized Money Changers - AMC previously known as Full-Fledged Money Changers AMCs are entities licensed by RBI to purchase Foreign Currency from Residents and Non-residents visiting India, and for sale of FC for certain approved purposes. An AMC is also permitted to buy & sell FCN and Encashed TC to another AMC or an AD AMCs are also allowed to export their surplus FC Notes.

9. Bringing In & Taking Out Of Foreign Exchange Foreign exchange in any form can be brought to India after filling in the CDF (Currency Declaration Form) at Customs. Taking out foreign exchange in any form is prohibited unless it is covered under general or special category.

10. Transactions that we can do… Purchase of foreign currency & TC. Sale - foreign currencies ,TC , Cash Passports & IDBI World Currency card SWIFT /FCDD under AD II Re-conversion. Export of excess currencies.

11. Purchases Purchase from residents & non-residents. Purchase from AD’s and AMC’s Purchase from our own franchisees

12. Purchase from Public-Resident Indians Name & Proper Identification is required for all purchases. Payment mode : Cash equivalent of USD1000/month for resident Indian. Upto USD 3000 for NRI/Foreigner per month. Over and above USD 5000 CDF is required. Pay as crossed cheque favouring customer account over and above the said ceiling. Documents : Up to USD 200 equivalent – ID details should be recorded. Above USD 200 equivalent – copy of Photo ID should be filed.

13. TRANSATION WITHOUT CDF USD TC 10000 USD CN 5000+USD TC 5000 If TC does not exceed USD 10000 or the CN does not exceed USD 5000 or its equivalent , declaration on the CDF is normally not insisted upon .

14. Purchase from NRI’s & Foreigners Limit : USD5000 (CN)/USD10000 (TC) with out CDF. Any amount, if CDF is produced for the same. Payment : Cash / Cash Chq / Crossed Chq. Documents : Passport copy , CDF if produced.

15. Sales to Public Under AD-II license, we can release exchange to individual travelers as well as Corporate for a variety of purposes such as Private travel, Education, Employment, Emigration, Medical Treatment, Business visits sponsored by Corporate, remittances on behalf of Travel Agents/Tour Operators, wages of crew members etc. The release can be in Physical form and can be in in the form of remittance.

16. Need Money ? Foreign Exchange - Sales Physical Form Currency Notes Travelers Cheques Foreign Currency Card Remittance FCDD SWIFT

17. Eligibility for Forex sale in Physical form Resident Indian Citizens going abroad. Minimum Basic Documents (a) Application in the prescribed Form (b)Passport (c)Air Ticket (d)Visa Foreign Exchange - Sales

18. CURRENCY COMPONENT. Maximum amount of exchange in the form of Currency Notes one can take out of the country remains restricted to USD 2000 or its equivalent thereof. However, for countries such as Russia, CIS and Iran the entire amount can be taken in the form of currency notes whereas for Iraq and Libya, the amount is restricted to USD 5000 or its equivalent thereof. MODE OF PAYMENT Cash, if the rupee value is Rs.50,000/- or less than that. Cheque(s) drawn on the applicant’s bank account(s) PAN Card(s) of tenderers of payment. ENDORSEMENTS ON PASSPORTS Endorsing the Passports with the amount of foreign exchange released is not mandatory; but an option to be exercised by the purchaser of foreign exchange and hence if requested for, Passports may be endorsed with the amount of forex released. Foreign Exchange - Sales

19. Foreign Exchange - Sales -Purpose Private visit Business Travel Education Medical treatment Employment Emigration Fee Visa fee Fee for examination in India and Abroad. Migration Registration of documents Registration/Subscription/Membership fees to International Organizations. Remittance by entities such as companies/Firms etc. Film Shooting Fee for participation in global conferences and specialised training. Remittances for participation in international events/competitions Disbursement of crew wages Remittance under educational tie up arrangements with universities abroad.

20. Reconversion Process of converting the unspent Indian currency held by the non-residents at the time of departure from India.

21. Documents Required ..? Encashment certificate with date of encashment with in the last 90 days. Passport copy Air Ticket with date of departure within the next 7 days. Declaration in the prescribed format under the Reconversion clause. No documents required for converting upto Rs.10000/-

22. Icici TRAVEL CARD AED AUD CAD CHF EUR GBP USD

23. Bulk Purchase & Sales AD’s may freely purchase / sell Foreign currency /Travelers chq from / to other AMC’s and AD’s. Conditions-AMC Should file , track & update the parties license according to the expiry date. All payments and receipts of the deal should be done only through cheque.

24. Travellers Cheques MASTERCARD VISA AMEX CITICORP

25. TC ENCASHMENTS CUSTOMER APPROACHES THE AGENT FOR ENCASHMENT AGENT ACCEPTS TC FIXES A RATE CUSTOMER SIGNS THE TC’S IN PRESENCE OF THE OFFICER SIGNATURE MATCH, AUTHENTICITY OF TC CURRENCY DENOMINATION CUSTOMER IDENTIFICATION WITH PASSPORT TOTAL VALUE OF EXCHANGE RATES APPLIED ENCASHMENT AMOUNT RBI GUIDE LINES DOCUMENTATION OF ID ,TAKE PHOTOCOPIES AUTHORIZATION FROM ISSUER

26. Precautions to be taken while encashing Travellers Cheques ..! Travellers cheques are to be countersigned by the traveller when they are presented for encashment at the required place in the presence and view of the cashier / authorised official of the branch The staff carrying out the encashment should properly follow the “ Watch and Compare Procedure ” The signature on the TCs should be verified with the signature on the passport

27. In case , the person he has already countersigned , then it should be insisted that he/she signs once again on the reverse of the cheque in your presence Watch the person signing the TCs and compare the signatures. If satisfied prepare the Encashment Certificate with necessary details, stamp the TCs on the reverse and take them in our possession We should always take the Authorisation from the TC Issuer. Always record the Copy of the Identity Card preferably Passport as Proof.

28. Standard security features : Bank notes Superior quality paper. Usage of special & superior quality ink. Water marks. Intaglio printing : glow under UV light. Expensive raised printing which makes certain printed portions coarse when touched. Increase number of color schemes which makes duplicating expensive.

29. ? FRAUDS Stolen TC’s. Circulating Out Moded Notes.

30. Safe Guard against Frauds Know your customer. Being updated about security features. Adherence to regulatory and corporate guide lines. Proper identification of the customer. Care during rush hour/early morning/evening transactions.

31. Ways of Detections Look and compare Can use MRI guide to list out security features. Check under the UV lamp,compare with MRI for features that related to UV test. Feel and scrutinize the notes for raised surfaces and color shifting ink surfaces. Check with any available data of counterfeited serial numbers. Ensure a double check at your end

32. Reports to be filed..? FLM1 to FLM 8 should be filed on a daily basis. Summary of FLM4 to FLM8 should be filed at the month end. Report of purchase exceeds $10000 should be filed at the month end.

33. FLM REPORTS FLM 1 FLM 2 FLM 3 FLM 4 FLM 5 FLM 6 FLM 7 FLM 8 ET Summary DAILY CN SUMMARY-DAILY REPORT. DAILY ET SUMMARY-DAILY REPORT. PURCHASE FROM PUBLIC-DLY/MLY REPORT. PURCHASE FROM FFMC/AD-DLY/MLY REPORT. SALE TO PUBLIC-DLY/MLY REPORT. SALE TO FFMC/AD-DLY/MLY REPORT . TC SURRENDER TO FFMC/AD-DLY/MLY REPORT . STATEMENTOF PURCHASE & SALE-DLY/MLY REPORT . PURCHASE & SALE OF TC FOR THE MONTH .

34. General Alertness … Dealing with New Clients. Payment received through Cheques. Keep a constant watch on Forex Rates. Sudden Request from a Travel Agent/Firms. Handling Transactions at Branch Counters. Make a practice of always booking the deal.

35. More clarification…?

36. Foreign Application