What is needed to open a shop of money change linence from RbI?

Documents required for opening a money exchange business in India

1. Application form AD II along with the prescribed fees of Rs. 500/-

2. Certified copy of the Certificate of Incorporation in form INC-IV.

3. Memorandum and Articles of Association of the Company or Partnership Deed and Agreement.

4. Certified copies of the photographs, KYC details of Directors/Partners and Authorized Signatories.

5. Certified copy of the PAN Card of the Company.

6. Proof of having sufficient experience and expertise in the business of foreign exchange.

7. Net Worth Criteria of minimum net owned fund of Rs.50 lakhs

8. Proof of the premises where the business will be conducted (e.g., lease agreement, property tax receipts, etc.).

Steps to apply for Money Changer’s License:

* The applicant organization has to submit an application in form (AD-II) to the Reserve Bank of India Regional office.

* Submission of the required documents along with the application form

* The application will then be processed by RBI, upon fulfillment of all the conditions stipulated in the Foreign Exchange Management (Transfer or Issue of Foreign Exchange) Regulations, 2000 (as amended up to date), they will grant a license to the organization

Additional requirements:

* The applicant organization must have a minimum net worth of Rs. 50 lakhs.

* The applicant organization must have a good track record in business.

* The applicant organization must have adequate infrastructure and manpower to handle money changing operations.

* The applicant organization must have a proper risk management system in place.

Once you have obtained a license from the RBI, you will need to comply with the following regulations:

* You must maintain a record of all money changing transactions.

* You must report any suspicious transactions to the RBI.

* You must adhere to the exchange rates set by the RBI.

* You must display the RBI license in a prominent place in your shop.

By following these requirements, you can open a shop of money change in India and legally conduct money changing operations.