Money-changing facilities liberalised

Mumbai: The Reserve Bank of India (RBI) has said that resident entities need not require a licence from the RBI for undertaking money-changing activities.

Authorised 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."

The 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.

Existing 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.