TMI BlogMemorandum of Instructions to Authorised Money Changers (AMCs)X X X X Extracts X X X X X X X X Extracts X X X X ..... e 1999, as amended from time to time. 4. FFMCs/RMCs may, however, continue to maintain the same set of books/registers as hitherto. A revised FLM 8 designed to capture data relating to purchases from franchisees is at Annexure. 5. Authorised dealers may bring the contents of this circular to the notice of their constituents concerned. 6. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999). Yours faithfully, Grace Koshie Chief General Manager Annexure [A.P.(DIR Series) Circular No.43 dated November 12, 2002] FLM 8 Summary statement of purchases and sale of foreign currency notes during the month of…………………………., 200 ------------------------------------------------------------- Name and address RBI Licence No._______ of money changer US $ £ EURO JY etc. A. Opening balance Purchase of foreign currency notes from Public RMCs/FFMCs/ADs including imports Franchisees B. Total Pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of foreign currency notes does not exceed US$ 5000/- or its equivalent, declaration thereof on CDF is not insisted upon. (ii) Taking out foreign exchange in any form, other than foreign exchange obtained from an authorised dealer or a money changer is prohibited unless it is covered by a general or special permission of Reserve Bank. Non-residents, however have general permission to take out an amount not exceeding the amount originally brought in by them subject to compliance with the provisions of sub-para (i) above. 4. Purchases of Foreign Currency from Public (i) AMCs/franchisees may freely purchase foreign currency notes, coins and travellers cheques from residents as well as non-residents. Production of passport need be insisted upon only while encashing travellers cheques tendered by non-residents. Where the foreign currency was brought in by declaring on form CDF, the tenderer should be asked to produce the same. The production of the form may, however, be waived if for any reason, the tenderer is unable to produce it. (ii) AMCs may sell Indian rupees to foreign tourists/visitors against International Credit Cards and take prompt steps to obtain reimbursement thr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emand draft. For this purpose, sales in instalments, should be reckoned as a single drawal for the journey. The sale of foreign currency/notes and coins within the overall entitlement of foreign exchange, should be restricted to the limits prescribed by Reserve Bank from time to time. 8. Sales against Reconversion of Indian Currency FFMCs may convert into foreign currency, unspent Indian currency held by non-residents at the time of their departure from India, provided a valid Encashment Certificate is produced. . Note : FFMCs may convert at their discretion, unspent Indian currency up to Rs.10,000 in the possession of non-residents if, for bonafide reasons, the person is unable to produce an Encashment Certificate after ensuring that the departure is scheduled to take place within the following seven days.. 9. Cash Memo FFMCs may issue a cash memo ,if asked for, on official letterhead to travellers to whom foreign currency is sold by them. The cash memo may be required for production to emigration authorities while leaving the country. 10. Rates of Exchange AMCs may put through transactions relating to foreign currency notes and travellers cheques at rates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the above amount, would require the approval of the concerned Regional Office of the Reserve Bank. 16. Registers and Books of Accounts of Money-changing Business i. AMCs shall maintain such registers and books of account as prescribed by the Reserve Bank from time to time ii. All registers and books should be kept up-to-date, cross-checked and balances verified daily. iii. Transactions not pertaining to money-changing business of the AMC should not be mixed up with money-changing transactions. In other words, the registers and books of accounts should show clearly the trail of transactions pertaining to money-changing business. iv. Separate registers should be maintained for each establishment, if the AMC maintains more than one place of business. 17. Submission of Statement to Reserve Bank i. FFMCs should submit to the office of Reserve Bank which has issued the licence/unified licence, a monthly consolidated statement for all its offices in form FLM 8 so as to reach Reserve Bank not later than the 10 th of the succeeding month. ii. Similarly RMCs should submit to the office of Reserve Bank under whose jurisdiction they are functioning, a quarterly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence. If it is intended to provide money-changing facilities on a temporary basis on certain special occasions, a separate application should be made for the purpose to the concerned Regional Office of Reserve Bank giving full details such as period for which the exchange counter will be operated, volume of business expected, manner of accounting of the transactions, letter from organisers making available venue for the money changing facilities, etc. 22. Revocation of Licence Reserve Bank may revoke the licence granted to an AMC at any time for reasons of public interest or if the AMC has not complied with any of the conditions of the money-changing licence issued by Reserve Bank or has made any false declaration or has not conducted the business in accordance with the provisions of this Memorandum read with the amendments issued from time to time or has contravened any of the Exchange Control regulations. Annexure Scheme for Authorised Dealers and Full Fledged Money Changers Appointing Agents/Franchisees for Undertaking Restricted Money Changing Objective The objective of the Scheme is to provide easier coversion facilities for travellers and tourists, inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nches. (b) The surrender of collections by the franchisee to the franchiser or other authorised persons, as may be agreed upon, within 7 days. (c)The maintenance of proper record of transactions by the franchisee. (d)The on-site inspection of premises and records of the franchisee by the franchiser at least once a year. Reporting and Inspection The franchisers i.e. ADs/FFMCs would be expected to put in place adequate arrangements for reporting of transactions by the franchisees to ADs/FFMCs in a simple format to be prescribed by them on a regular basis, say at monthly intervals. Form RMC - F 1. Name of the AD/FFMC 2. Name and address of the franchisees Details of locations i) ii) iii) etc. 3. Arrangements in place to surrender the foreign exchange 4. Reporting and Inspection arrangements. Authorised Signatory Date: Memorandum Amc ------------------------------------------------------------------------------------------------------------------------------------------------------ Memorandum of Instructions to Authorised Money Changers -------------------------------------------------------------------------------- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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