Foreign Exchange Agents/Franchisees of Authorised Dealers - RBI issues Revised Guidelines
KEEPING in view the growth in money changing activities undertaken by the agents / franchisees of AD Banks/ FFMCs and the issuance of Anti Money Laundering (AML) Guidelines on money changing activities, there is a need to exercise adequate control over the franchisees by the franchisers. Accordingly, RBI has decided to amend certain instructions. Some of them are:
++ The foreign currency purchased by the franchisee should be surrendered only to the franchiser within 7 working days from the date of purchase.
++ The franchisers may take due care to avoid appointing individuals/ entities as franchisees who have cases / proceedings initiated / pending against them by any law enforcing agencies.
++ The AD Category – I banks / AD Category – II / FFMCs may appoint franchisees within a distance of 100 kms from their controlling branches concerned.
++ Franchisees should surrender foreign currency notes, coins and travellers' cheques purchased only to their franchisers within seven working days.
RBI Circular No. 31/RBI., Dated: October 03, 2011