FFMC License online gives you the power to become a full-fledged money changer. However, because for this license is crowded, RBI, who issues this license, has setup very specific eligibility criteria for the license. If an applicant doesn’t fit in the points of the criteria, his or her application is rejected. Therefore, to any applicant out there, know the eligibility criteria before stepping forward to obtain the license.
Our FFMC license consultant care about it. The result of that care is the explanation of the mentioned eligibility criteria and how you can become eligible before you file the application.
Read this article to know more.
The reason that eligibility criteria exist
Foreign tourists need Indian rupees to enjoy the delights our great country has to give them. Similarly, nationals who want to go outside of India want to exchange currencies so that they can enjoy the delights the other countries have in store for them. With client base such as these, the Reserve bank of India has to create an eligibility criteria. Without it:
- Good quality money changing services won’t be present.
- The Reserve bank of India have to take care of individuals that don’t deserve the license.
- As the quality of the money changing services dwindles, the country’s reputation too gets tarnished.
To provide the best money changing services by only entertaining the FFMC license for the serious players, the Reserve Bank of India ensures that India’s reputation is never tarnished.
That’s reason justifying the existence of FFMC license eligibility criteria.
Criteria 1: The applicant needs to be an organization
The complex nature of money changing services makes it important only an organization and not an individual is issued the FFMC license. That’s why, only two types of entities are eligible for the license:
- Limited Liability Partnership,
- Public or Private Limited Company
To adhere to this particular eligibility criteria is the easiest. Just consult with a business incorporation expert and establish an FFMC company within a few days. Remember to keep the objective of the company as “providing money changing services”
Criteria 2: The applicant should meet the net worth requirements
FFMC license fees is not the only time money is going to be a concern when applying for the license. As RBI’s motive is only to entertain the serious players, one needs to have serious amount of net worth before applying for the license.
- In case you want to open a single branch of FFMC, you need 25 lakh rupees.
- If you’re interested in more than one branch of FFMC, you need a net worth of 50 lakh rupees.
In order to adhere to this eligibility criteria, you can ask the banks for help. Provided that you’re registered as a startup and have Udyog Aadhar Registration, you can easily get financial aid at affordable interest rates.
Criteria 3: The applicant shouldn’t have any criminal cases pending against him
The government is only interested in issuing licenses to those with clean records and clear conscience. I don’t know whether or not you can adhere to a good conscience, but you can definitely have a clean record. If you have any case against you either of the following departments:
- Department of Enforcement, or
- Department of Revenue Intelligence, you won’t be issued a license.
To become eligible in this case is quite difficult. But we believe that everyone deserve a chance at redemption. Thus, we have no issue in telling you that you can plea to the government to expunge your records. The condition is the case should be old and no case should’ve been filed against you since that case.
Conclusion
FFMC license application can only be filed if you follow through the aforementioned criteria. If you do, you can reach out our experts for your licensing needs. Already have a license but it’s about to expire? Reach out to us for our affordable FFMC license renewal services.
