Foreign ExchangeForeign Exchange

Money ExchangeMoney Exchange

CambioCambio

Bureau De ChangeBureau De Change

IntroductionIntroduction

Rules and Rules and RegulationsRegulations

Money Changing Money Changing BusinessBusiness

General AlertnessGeneral Alertness

Exploring the MarketExploring the Market

What is Foreign Exchange…?What is Foreign Exchange…?

Exchange Rate ..?

The rate at which one The rate at which one currency may be currency may be converted into another converted into another currency.currency.

Factors Affecting Exchange Rates…

• Demand & supply.Demand & supply.• Policy decision by Policy decision by

Government.Government.• Share market movements.Share market movements.• War, civil unrest Etc.War, civil unrest Etc.• Natural calamityNatural calamity

•Foreign Exchange Management Act.

•Reserve Bank of India

• We are We are Authorised Dealer Category IIAuthorised Dealer Category II, , licensed by Reserve Bank of India and licensed by Reserve Bank of India and controlled by them, exercising the controlled by them, exercising the powers imbibed in the foreign exchange powers imbibed in the foreign exchange management act of 1999.management act of 1999.

• Our license is a unified AD license Our license is a unified AD license issued from RBI Bangalore, where our issued from RBI Bangalore, where our registered office is situatedregistered office is situated

Authorized Money ChangersAuthorized Money Changers - AMCpreviously known as Full-Fledged Money Changerspreviously known as Full-Fledged Money Changers

AMCs are entities licensed by RBI to purchase Foreign Currency from Residents and Non-residents visiting India, and for sale of FC for certain approved purposes.

An AMC is also permitted to buy & sell FCN and Encashed TC to another AMC or an AD

AMCs are also allowed to export their surplus FC Notes.

Bringing InBringing In && Taking Out Of Foreign Taking Out Of Foreign ExchangeExchange

Foreign exchange in any form can be brought to India after filling in the CDF (Currency Declaration Form) at Customs.

Taking out foreign exchange in any form is prohibited unless it is covered under general or special category.

Transactions that we can do…

• Purchase of foreign currency & TC.

• Sale - foreign currencies ,TC , Cash Passports & IDBI World Currency card

• SWIFT /FCDD under AD II• Re-conversion.• Export of excess

currencies.

Purchases

• Purchase from residents & non-Purchase from residents & non-residents.residents.

• Purchase from AD’s and AMC’s Purchase from AD’s and AMC’s • Purchase from our own Purchase from our own

franchiseesfranchisees

Purchase from Public-Resident IndiansPurchase from Public-Resident Indians

• Name & Proper Identification is required for all purchases.

• Payment mode : Cash equivalent of USD1000/month for resident Indian. Upto USD 3000 for NRI/Foreigner per month.

• Over and above USD 5000 CDF is required.

• Pay as crossed cheque favouring customer account over and above the said ceiling.

• Documents : Up to USD 200 equivalent – ID details should

be recorded. Above USD 200 equivalent – copy of Photo

ID should be filed.

TRANSATION WITHOUT CDFTRANSATION WITHOUT CDF

USD TC 10000USD CN 5000+USD TC 5000

If TC does not exceed USD 10000 or the CN does not exceed USD 5000 or its equivalent , declaration on the CDF is normally not insisted upon.

Purchase from NRI’s & ForeignersPurchase from NRI’s & Foreigners

• Limit : USD5000 (CN)/USD10000 Limit : USD5000 (CN)/USD10000 (TC) with out CDF.(TC) with out CDF.

• Any amount, if CDF is produced Any amount, if CDF is produced for the same.for the same.

• Payment : Cash / Cash Chq / Payment : Cash / Cash Chq / Crossed Chq.Crossed Chq.

• Documents : Passport copy , CDF Documents : Passport copy , CDF if produced.if produced.

Sales to PublicSales to Public

• Under AD-II license, we can release exchange to individual travelers as well as Corporate for a variety of purposes such

as Private travel, Education, Employment, Emigration, Medical Treatment, Business visits sponsored by Corporate,

remittances on behalf of Travel Agents/Tour Operators, wages of crew members etc.

• The release can be in Physical form and can be in in the form of remittance.

Need Money ?Need Money ?

Foreign Exchange - Sales Foreign Exchange - Sales

Physical Form

Currency Notes

Travelers Cheques

Foreign Currency Card

Remittance

FCDD

SWIFT

Eligibility for Forex sale in Physical form Eligibility for Forex sale in Physical form

Resident Indian Citizens going abroad.Resident Indian Citizens going abroad.

Minimum Basic DocumentsMinimum Basic Documents(a) Application in the prescribed Form(b)Passport(c)Air Ticket(d)Visa

Foreign Exchange - SalesForeign Exchange - Sales

CURRENCY COMPONENT.Maximum amount of exchange in the form of Currency Notes one can take out

of the country remains restricted to USD 2000 or its equivalent thereof. However, for countries such as Russia, CIS and Iran the entire amount can be taken in the form of currency notes whereas for Iraq and Libya, the amount is restricted to USD 5000 or its equivalent thereof.

MODE OF PAYMENT (a) Cash, if the rupee value is Rs.50,000/- or less than that.(b) Cheque(s) drawn on the applicant’s bank account(s)(c) PAN Card(s) of tenderers of payment.

ENDORSEMENTS ON PASSPORTSEndorsing the Passports with the amount of foreign exchange released is not mandatory;

but an option to be exercised by the purchaser of foreign exchange and hence if requested for, Passports may be endorsed with the amount of forex released.

Foreign Exchange - Sales Foreign Exchange - Sales

Foreign Exchange - Sales -PurposeForeign Exchange - Sales -Purpose

1. Private visit

2. Business Travel

3. Education

4. Medical treatment

5. Employment

6. Emigration Fee

7. Visa fee

8. Fee for examination in India and Abroad.

9. Migration

10. Registration of documents

11. Registration/Subscription/Membership fees to International Organizations.

12. Remittance by entities such as companies/Firms etc.

13. Film Shooting

14. Fee for participation in global conferences and specialised training.

15. Remittances for participation in international events/competitions

16. Disbursement of crew wages

17. Remittance under educational tie up arrangements with universities abroad.

ReconversionReconversion

• Process of converting the unspent Indian currency held by the non-residents at the time of departure from India.

Documents Required ..?

• Encashment certificate with date of Encashment certificate with date of encashment with in the last 90 days.encashment with in the last 90 days.

• Passport copyPassport copy• Air Ticket with date of departure within the Air Ticket with date of departure within the

next 7 days.next 7 days.• Declaration in the prescribed format under Declaration in the prescribed format under

the Reconversion clause.the Reconversion clause.• No documents required for converting upto No documents required for converting upto

Rs.10000/-Rs.10000/-

Icici TRAVEL CARDIcici TRAVEL CARD

AED AUD CAD CHF EUR GBP USD

Bulk Purchase & Bulk Purchase & SalesSales

• AD’s may freely purchase / sell Foreign AD’s may freely purchase / sell Foreign currency /Travelers chq from / to other currency /Travelers chq from / to other AMC’s and AD’s.AMC’s and AD’s.

• Conditions-AMCConditions-AMC Should file , track & update the parties Should file , track & update the parties

license according to the expiry date.license according to the expiry date. All payments and receipts of the deal All payments and receipts of the deal

should be done only through cheque.should be done only through cheque.

Travellers Cheques

• MASTERCARD

• VISA

• AMEX

• CITICORP

TC ENCASHMENTSCUSTOMER

APPROACHES THE AGENT FOR ENCASHMENT

AGENT ACCEPTS TC FIXES A RATE

CUSTOMER SIGNS THE TC’S

IN PRESENCE OF THE OFFICER

SIGNATURE MATCH, AUTHENTICITY OF

TC CURRENCY DENOMINATION

CUSTOMER IDENTIFICATION WITH PASSPORT

TOTAL VALUE OF EXCHANGERATES APPLIED

ENCASHMENT AMOUNTRBI GUIDE LINES

DOCUMENTATION OF ID ,TAKE PHOTOCOPIES

AUTHORIZATION FROM

ISSUER

Precautions to be taken while Precautions to be taken while

encashing Travellers Chequesencashing Travellers Cheques..!..!

• Travellers cheques are to be Travellers cheques are to be countersigned by the traveller countersigned by the traveller when they are presented for when they are presented for encashment at the required place encashment at the required place in the presence and view of the in the presence and view of the cashier / authorised official of the cashier / authorised official of the branch branch

• The staff carrying out the The staff carrying out the encashment should properly follow encashment should properly follow the “ Watch and Compare the “ Watch and Compare Procedure ”Procedure ”

• The signature on the TCs should be The signature on the TCs should be verified with the signature on the verified with the signature on the passportpassport

• In case , the person he has already countersigned , then it should be insisted that he/she signs once again on the reverse of the cheque in your presence

• Watch the person signing the TCs and compare the signatures. If satisfied prepare the Encashment Certificate with necessary details, stamp the TCs on the

reverse and take them in our possession

• We should always take the Authorisation from the TC Issuer.

• Always record the Copy of the Identity Card preferably Passport as Proof.

Standard security features : Bank notes

Superior quality paper. Superior quality paper.

Usage of special & superior quality ink.Usage of special & superior quality ink.

Water marks.Water marks.

Intaglio printing : glow under UV light.Intaglio printing : glow under UV light.

Expensive raised printing which makes Expensive raised printing which makes certain printed portions coarse when certain printed portions coarse when touched.touched.

Increase number of color schemes Increase number of color schemes which makes duplicating expensive.which makes duplicating expensive.

? FRAUDS? FRAUDS

• Stolen TC’s.Stolen TC’s.

• Circulating Out Moded Notes.Circulating Out Moded Notes.

Safe Guard against FraudsSafe Guard against Frauds

Know your customer.Know your customer. Being updated about Being updated about

security features.security features. Adherence to regulatory Adherence to regulatory

and corporate guide lines.and corporate guide lines. Proper identification of the Proper identification of the

customer.customer. Care during rush hour/early Care during rush hour/early

morning/evening morning/evening transactions. transactions.

Ways of DetectionsWays of Detections

Look and compareLook and compare Can use MRI guide to list out Can use MRI guide to list out

security features.security features. Check under the UV Check under the UV

lamp,compare with MRI for lamp,compare with MRI for features that related to UV test.features that related to UV test.

Feel and scrutinize the notes for Feel and scrutinize the notes for raised surfaces and color shifting raised surfaces and color shifting ink surfaces.ink surfaces.

Check with any available data of Check with any available data of counterfeited serial numbers.counterfeited serial numbers.

Ensure a double check at your Ensure a double check at your endend

Reports to be filed..?Reports to be filed..?

• FLM1 to FLM 8 should be FLM1 to FLM 8 should be filed on a daily basis.filed on a daily basis.

• Summary of FLM4 to FLM8 Summary of FLM4 to FLM8 should be filed at the should be filed at the month end.month end.

• Report of purchase Report of purchase exceeds $10000 should be exceeds $10000 should be filed at the month end.filed at the month end.

FL

M R

EP

OR

TS

FLM 1

FLM 2

FLM 3

FLM 4

FLM 5

FLM 6

FLM 7

FLM 8

ET Summary

DAILY CN SUMMARY-DAILY REPORT.

DAILY ET SUMMARY-DAILY REPORT.

PURCHASE FROM PUBLIC-DLY/MLY REPORT.

PURCHASE FROM FFMC/AD-DLY/MLY REPORT.

SALE TO PUBLIC-DLY/MLY REPORT.

SALE TO FFMC/AD-DLY/MLY REPORT.

TC SURRENDER TO FFMC/AD-DLY/MLY REPORT.

STATEMENTOF PURCHASE & SALE-DLY/MLY REPORT.

PURCHASE & SALE OF TC FOR THE MONTH.

General AlertnessGeneral Alertness…

• Dealing with New Clients.• Payment received through Cheques.• Keep a constant watch on Forex Rates.• Sudden Request from a Travel Agent/Firms.• Handling Transactions at Branch Counters.• Make a practice of always booking the deal.

More clarification…?

Foreign Application