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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 ..... 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 $ ฃ EURO JY etc. A. Opening balance Purchase of foreign currency notes from * Public * RMCs/FFMCs/ADs including imports * Franchisees B. Total Purchases [(a) + (b) + (c)] Sales of foreign currency notes under * BTQ * Business Visits * Sales to other FFMCs/ADs including exports C. Total Sales [ (a) + (b) + (c) ] Closing balance ( A + B - C) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 through normal banking channels. 5. Encashment Certificate (a) AMCs may issue certificate of encashment when asked for in cases of purchases from the public. These certificates bearing authorised signatures should be issued on the letter head of the money-changer and proper record maintained. (b)In cases where encashment certificate is not issued, attention of the customers should be drawn to the fact that unspent local currency held by non-residents will be allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hment 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 of exchange determined by market conditions. 11. Display of Exchange Rate Chart AMCs should display at a prominent place in or near the public counter, a chart indicating the rates for purchase/sale of foreign currency notes and travellers cheques. 12. Foreign Currency Balances i. FFMCs should keep balances in foreign currencies at reasonable level and avoid build up of idle balances with a view to speculating on currency movements. ii. RMCs/franchisees should surrender collection of foreign cur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isters 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 10th of the succeeding month. ii. Similarly RMCs should submit to the office of Reserve Bank under whose jurisdiction they are functioning, a quarterly statement in form RLM 3. The statement duly certified by the Authorised Dealer/FFMC should reach Reserve Bank not later than the 10th day of the month following the quarter. In case the collections of foreign currencies are surrendered to different authorised dealers/FFMCs, separate quarterly statements should be prepared to facilitate independent certification by each such authorised dealer/FFMC. iii. AMCs should submit to the Reserve Bank a monthly statement indicating details of receipt/purchase of US $ 10,000/ its equivalent and above p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c 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, including NRIs, by enlarging the network of money changing facilities in the country. It is expected that the new facility given below, will enable banks and full fledged money changers to provide such facilities at all tourist centres and major cities for extended hours and on holidays. Proposed Scheme Under the proposed Scheme, in addition to the existing facilities, RBI would freely permit Banks i.e. ADs and FFMCs to enter into agency/franchising agreements at their option with entities for the purpose of carrying on Restricted Money Changing business i.e. conversion of foreign c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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