FFMC License in Delhi: Process, Fees, Documents & More

A Full-Fledged Money Changer (FFMC) is a company authorized by the Reserve Bank of India (RBI) under Section 10(1) of the Foreign Exchange Management Act (FEMA), 1999, to legally carry out foreign exchange operations—buying and selling foreign currency for specified purposes such as tourism, private travel and business visits. Only entities with a valid FFMC license may engage in money-changing activities; operating without one can attract legal action.

Why Choose Delhi for an FFMC License?

Delhi, India’s national capital, acts as a major hub for international travel, trade, conferences, and diplomatic activity. This creates substantial demand for foreign exchange services—from tourists, business travellers, and NRIs. Setting up an FFMC in Delhi thus offers both operational advantages (access to airports, hotels, trade zones) and strong commercial potential through sheer footfall and cross-border financial activity.

Eligibility Criteria

To apply for an FFMC license in Delhi, your company must meet the following requirements:

1. Incorporation – Must be registered under the Companies Act, 2013, with “money-changing business” included in the MoA.

2. Net-Owned Funds (NOF) –

• ₹25 lakh minimum for a single-branch FFMC
• ₹50 lakh minimum for a multi-branch FFMC

3. Clean Track Record – No pending cases with ED/DRI or other enforcement agencies.

Step-by-Step Application Process in Delhi

1. Prepare Documents – Compile statutory certificates, audited statements and business plans.
2. Submit to RBI Regional Office, Delhi – Application in prescribed format (Annex I of FED Master Direction No.18/2015-16).
3. Evaluation by RBI – Background checks, financial scrutiny and director verification.
4. License Issuance – If approved, FFMC must start operations within 6 months.
5. Compliance & Reporting – Maintain registers, submit monthly/quarterly reports, conduct audits.
6. Renewal – Every 3 years with updated NOF and compliance records.

Expanded Note: While the RBI typically takes 2–3 months to process applications, delays may occur if documents are incomplete or clarifications are sought. Businesses should engage legal or compliance experts to avoid rejection.

Documents Required for FFMC License in Delhi

Applicants must submit the following documents along with the application to the RBI regional office in Delhi:

• Certificate of Incorporation and Commencement of Business
• Memorandum of Association (MoA) including “money-changing business”
• Latest audited financial statements (Balance Sheet, Profit & Loss)
• Statutory Auditor’s Certificate certifying Net Owned Funds (NOF)
• Confidential Report from the company’s banker
• Board Resolution authorizing application for FFMC license
• Declaration that the company and directors are not under any criminal or enforcement investigation
• Business plan, including operational model and proposed office location
• Details of Directors/Key Management Personnel (with KYC documents)
• Premises proof (rent agreement/ownership papers) and local municipal/shop establishment certificate (to be submitted post-approval before starting operations)

Benefits of Operating an FFMC in Delhi

1. Legal, RBI-authorized money-changing business
2. High demand from tourists, NRIs, corporates and embassies
3. Opportunities to expand via branches and franchisees
4. Profitable business through forex margins and services

Additional Advantage: Unlike Authorized Dealer (AD) Category-I and Category-II licensees, FFMCs face fewer regulatory restrictions, making it easier for smaller financial players to participate in the forex market.

Government Fees & Other Costs

While the RBI does not officially levy a fixed application or renewal fee for FFMC licenses, businesses often incur additional expenses in practice—mainly related to documentation, consultancy and compliance assistance. Typical indicative expenses include:

1. License Processing Fee – RBI may levy a nominal processing charge depending on branch applications.
2. Professional/Consultant Fees – Consultancy fees will cost ₹75,000 + GST, depending on complexity.
3. Out-of-pocket expenses – ₹1,00,000/-
4. Concurrent Audit Costs – Since FFMCs must undergo independent audits, firms must budget yearly audit fees.
5. Branch Expansion/Franchisee Approval Fees – RBI does not charge a fixed fee, but each application involves documentation and compliance expenses.

Important: RBI may revise fees and compliance charges from time to time. Always confirm with the latest RBI Master Directions before applying.

Compliance & Reporting Obligations for FFMCs

Obtaining the license is only the first step. Operating an FFMC requires strict compliance:

1. Registers to Maintain –

• Daily transaction registers (currency purchased/sold)
• Stock register for foreign currency notes/traveller’s cheques
• Register for customer KYC details

2. Reporting Requirements –

• Monthly Statement: Foreign currency purchases/sales (to be filed within 10 days of month-end).
• Quarterly Statements: Details of high-value transactions and franchise operations.
• Annual Reports: Submitted to RBI for license renewal and regulatory monitoring.

3. Concurrent Audit – All transactions must undergo independent audit checks to prevent money laundering.

4. KYC/AML Compliance – FFMCs must strictly follow RBI’s guidelines on Know Your Customer (KYC) and Anti-Money Laundering (AML). Any violation can result in heavy penalties or cancellation of license.

Challenges & Tips

Conclusion

An FFMC License in Delhi is not just a regulatory approval—it is a gateway to tapping into India’s busiest financial and travel market. By meeting RBI’s strict eligibility, submitting the correct documents, and staying compliant with fees and reporting obligations, businesses can establish a strong presence in the forex services sector.

For companies looking to enter the foreign exchange business, Delhi provides unmatched opportunities due to its international travel inflows, corporate environment and global connectivity.

Frequently Asked Questions (FAQs)

1. How long does it take to obtain an FFMC license in Delhi?

It usually takes 2–4 months, depending on RBI’s processing time and the completeness of documents.

2. Can an FFMC operate multiple branches in Delhi?

Yes, but the company must maintain ₹50 lakh Net-Owned Funds and obtain prior approval from RBI.

3. Is there a difference between an FFMC and an Authorized Dealer?

Yes. Authorized Dealers (ADs) like banks have broader powers in forex trading, while FFMCs are restricted to money-changing activities (sale/purchase of currency for travel and related purposes).

4. What happens if an FFMC fails to comply with reporting obligations?

Non-compliance may lead to penalties, suspension or cancellation of the license by RBI.

5. Can foreign companies apply for an FFMC license in Delhi?

No. Only Indian companies incorporated under the Companies Act can apply.

6. Can an FFMC appoint franchisees?

Yes. Franchisees with at least ₹10 lakh Net-Owned Funds can be appointed, subject to RBI approval.