RBI/2011-12/242
A.P. (DIR Series) Circular No. 41
November 01, 2011
To,
All Authorised Persons in Foreign Exchange
Madam/ Sir,
Memorandum of Instructions governing money
changing activities
Attention of Authorised Persons is invited to Para-3 of Part B of the Annex-
I to the Memorandum of Instructions to Authorised Money Changers (AMCs), issued
vide
A. P. (DIR Series) Circular No. 57 [A.P. (FL/RL Series) Circular No. 04]
dated March 09, 2009 in terms of which applications from AMCs for additional
offices in metropolitan cities are considered if the total offices (including
proposed offices) of the applicant are in the ratio 1:1 (i.e. the applicant has
one non-metropolitan office for every office in a metro).
- In order to provide more flexibility, to authorised persons to decide the
location of their branches, it has been decided to dispense with the criteria of
1:1 ratio between metro and non-metro branches. However, we expect branches to
be diversified and to be meeting the demand of tourists, etc. All the other
instructions shall remain unchanged.
- Authorised Persons may bring the contents of this circular to the notice of
their constituents concerned.
- The directions contained in this Circular have been issued under Sections
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and
non-compliance with the guidelines would attract penal provisions of Section
11(3) of the Act ibid.
Yours faithfully,
(Meena Hemchandra)
Chief General Manager-in-Charge