RBI/2009-10/112
A. P. (DIR Series) Circular No.06
A. P. (FL/RL Series) Circular No. 01
August 3, 2009
To,
All Authorised Persons in Foreign Exchange
Madam / Sir,
Memorandum of Instructions governing money changing activities
Attention of Authorised Persons is invited to paragraph (C) 4 of Annex-I to the
Memorandum of Instructions governing money changing activities, issued vide
A.
P. (DIR Series) Circular No. 57 [A.P. (FL/RL Series) Circular No. 04] dated
March 9, 2009.
- In terms of paragraph (C) 4 of Annex-I to the circular, ADs Category - I/ ADs
Category - II/ FFMCs are required to obtain certain documents, including a
conduct certificate from the local police authorities, while conducting the due
diligence of their agents/ franchisees.
- It has been brought to our notice that Authorised Persons have been
experiencing difficulties in obtaining conduct certificate from local police
authorities in respect of agents/ franchisees, which are incorporated entities.
Accordingly, the existing requirement has been reviewed and ADs Category - I/
ADs Category - II/ FFMCs have been permitted to accept certified copy of the
Memorandum and Articles of Association and Certificate of Incorporation in lieu
of conduct certificate from the local police authorities, in respect of agents/
franchisees, which are incorporated entities. All other provisions of paragraph
(C) 4 of the Annex-I to the aforementioned circular shall remain unchanged.
Accordingly, Item No. 6 of the
Form RMC-F in Annex-IV of the circular may suitably be modified for corporate
franchisees.
- 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 Section
10(4) and Section 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,
(Salim Gangadharan)
Chief General Manager-in-Charge