RBI Mandates Money Changers to Sell at Least 75% of Bought Foreign Currency Notes to the Public Quarterly
- Blog|News|FEMA & Banking|
- < 1 minute
- By Taxmann
- |
- Last Updated on 29 May, 2024
Latest from Taxmann
Circular No. RBI/2024-25/39 A.P. (DIR Series) Circular No. 08, Dated: 27.05.2024
As per the master direction on Money-Changing Activities, Full-Fledged Money Changers (FFMCs)/non-bank Authorised Dealers (ADs) Category-II may obtain their normal business requirements of foreign currency notes from other FFMCs and Authorised Dealers (ADs) in India. They must also keep foreign currency balances at reasonable levels to avoid building up idle balances.
Now, the RBI has issued a circular specifying that starting from July 1, 2024, Full-Fledged Money Changers (FFMCs) and non-bank Authorized Dealers Category II (ADs Cat-II) must ensure that the value of foreign currency notes they sell to the public for permitted purposes is at least 75% of the value of the foreign currency notes they purchase from other FFMCs and Ads on a quarterly basis.
Additionally, records of such sales and purchases must be maintained and made available for audit or inspection. FFMCs and ADs selling foreign currency should also verify the ‘sale to public’ requirements of the purchasing FFMCs or non-bank ADs Category II by requesting the necessary data from these entities.
Further, the FFMCs/non-bank ADs Category-II shall submit their annual audited balance sheet to the concerned Regional Office of the Reserve Bank along with a certificate from their statutory auditors regarding the NOF as of the balance sheet date, latest by October 31 of the year concerned.
Click Here To Read The Full Circular
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
