Module: General Practice
Q50: Full Fledged Money Changers (FFMCs) are authorized to undertake all of the following activities EXCEPT:
✅ Correct Answer: D
FFMCs are the most restricted category of Authorized Persons.
1. Permitted Activities: FFMCs can purchase foreign currency (notes/coins/travellers' cheques) from the public.
They can sell foreign exchange only for: Private visits.
Business visits.
2. The Exception (Option D): FFMCs generally operate by handing over physical currency or travel cards.
They do not hold "Nostro" accounts abroad to facilitate wire transfers (SWIFT) for purposes like University Fees (Education) or Medical bills paid directly to hospitals.
3. Operational Nuance: While an FFMC can sell currency to a student for their travel pocket money, the actual remittance of fees (wire transfer) must be routed through an AD Category-I or AD Category-II bank.
1. Permitted Activities: FFMCs can purchase foreign currency (notes/coins/travellers' cheques) from the public.
They can sell foreign exchange only for: Private visits.
Business visits.
2. The Exception (Option D): FFMCs generally operate by handing over physical currency or travel cards.
They do not hold "Nostro" accounts abroad to facilitate wire transfers (SWIFT) for purposes like University Fees (Education) or Medical bills paid directly to hospitals.
3. Operational Nuance: While an FFMC can sell currency to a student for their travel pocket money, the actual remittance of fees (wire transfer) must be routed through an AD Category-I or AD Category-II bank.