All
Authorized Dealers
In Foreign Exchange,
Dear
Sirs,
AUTHORIZED
MONEY CHANGERS
1.
Attention of Authorized Dealers is invited to F.E. Circular
No.142 dated the 6th October, 1991 on the above
subject.
2.
It has been decided to make the following revisions in the
terms and conditions for grant of Authorized Money Changer’s
Licenses in future:-
-
Reduction
in the application processing fee from Rs.50,000 to
Rs.10,000.
-
Reduction
in the annual renewal fee from Rs. 10,000 to Rs.1000.
-
Fixation
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.
-
Reduction
in the time limit for commencement of the business from
6 months to 3 months from the date of grant of license.
3.
Consequently, the following amendments may be made in paragraph
6, Chapter
II of Exchange Control Manual (6th Edition,
1987):-
-
The
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.
-
The
existing paragraph
6 (ii) may be replaced with the following:-
"The
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 Bank’s confidential Report".
-
4.
Other terms and conditions for grant of Authorized Money
Changer’s 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.
5.
A copy of Press Release issued in this regard is enclosed.
6.
Please bring the above to the notice of your constituents.
Encl.
As above [Press Release].
