All Authorised Dealers
in Foreign Exchange/All Authorised Money Changers

Dear Sirs,

CODE OF CONDUCT FOR AUTHORISED MONEY CHANGERS IN FOREIGN EXCHANGE

Attention is invited to the paragraph 4 of F.E. circular No. 17 dated the 3rd July, 1999. Wherein the Authorized Money Changers were directed that their activities would be restricted to purchase and sale of foreign currency notes and coins only. They shall not buy or sell travelers cheques.

2. It has come to our notice that contrary to above instructions Authorised Money Changers are buying travelers cheques. This has viewed very seriously and they are, therefore directed to desist from this illegal activity failing which state Bank would be constrained to cancel their licenses.

3. Further, in terms of F.E. Circular referred to above, all Authorised Money Changers were advised to submit a weekly statement of sales and purchases, for weeks ending on the 8th, 15th, 22nd and the last day of each month to the Area Control Office of State Bank within 3 days in the proforma attached therewith, it has been observed that the said instructions are not being complied with despite repeated reminders. They are finally directed to submit the statement in question on regular basis. In case any Authorised Money Changer fails to submit the said statement for 8 consecutive weeks, his license will be liable to cancellation.