Full Fledged Money Changers (FFMC)

Full-Fledged Money Changer is a company that that carries out trading activities like forex currency after a prior approval from the Reserve bank of India. These companies are sanctioned under the Foreign Money Exchange Act, 1999. The Reserve Bank of India authorizes the Business entities to deal with foreign exchange for specific purposes.  These business entities are referred to as Authorized Money Changers or AMCs.

There are three types of AMCs:

  1. Authorized Dealer Category: I Banks (AD Category-I Banks)
  2. Authorized Dealer Category: II Banks (AD Category –II)
  3. Full-fledged Money Changers also called as FFMCs

The reasons for the three types of AMCs to exist are the following:

  1. The foreign tourists have a wider access to foreign exchange facilities
  2. To enable residents have a wider access to foreign exchange facilities
  3. Making sure that the customers get the most efficient service
  4. There is increased competition in the market.

In order to work as an AMC in India, the aspirant has to get an AMC License that is issued by the Reserve Bank of India. If any company dares to engage with Forex trading without the appropriate license, then they are going to get penalized.