In Foreign Exchange,
Attention of Authorized Dealers is invited to F.E. Circular
No.142 dated the 6th October, 1991 on the above
It has been decided to make the following revisions in the
terms and conditions for grant of Authorized Money Changers
Licenses in future:-
in the application processing fee from Rs.50,000 to
in the annual renewal fee from Rs. 10,000 to Rs.1000.
of the monetary limit of the paid up capital/net worth
of the applicant at Rs.250,000 irrespective of the fact
whether the applicant is an individual/firm/company
etc. and doing away with the condition of production
of Wealth Statement submitted to the Income Tax authorities
for proving the net worth.
in the time limit for commencement of the business from
6 months to 3 months from the date of grant of license.
Consequently, the following amendments may be made in paragraph
II of Exchange Control Manual (6th Edition,
figures of Rs. 50,000 and Rs.10,000
appearing in paragraph
6(I) may be amended to read as Rs.10,000
and Rs.1000 respectively.
6 (ii) may be replaced with the following:-
paid up capital/net worth of the applicant firm/company/partnership
concern/individual should not be less than Rs.250,000
as per audited accounts of the firm/company/partnership
or as per Banks confidential Report".
Other terms and conditions for grant of Authorized Money
Changers Licenses will remain unchanged. The changes
envisaged in Para 3 above become operative
with immediate effect and will have no bearing on the Licenses
granted/applications rejected prior to the date of issue
of this circular.
A copy of Press Release issued in this regard is enclosed.
Please bring the above to the notice of your constituents.
As above [Press Release].