Reserve Bank of India (RBI) has said that resident entities
need not require a licence from the RBI for undertaking
dealers (AD) and full-fledged money changers (FFMC) can
now enter into agency or franchising agreements for carrying
out the business of conversion of foreign currency notes,
coins or travellers cheques into the Indian rupee, the
RBI said in a communiqu. "ADs and FFMCs will only
be required to obtain a one-time approval of the RBI."
objective of the scheme is to provide easier conversion
facilities to travellers and tourists by enlarging the
network of money-changing facilities
in India. The RBI expects it will enable banks and FFMCs
to provide such facilities at all tourist centres and
major cities for extended hours and on holidays.
restricted money-changers (RMC) are now free to undertake
money-changing activities under this scheme as a franchisee
of an AD or FFMC by surrendering their existing licence.
Those RMCs who do not opt for operations under this scheme
may continue to undertake the money-changing business
until a further notice.