RBI Launches Online App for Issuance & Renewal of Licenses for Money Changers and Non-bank AD Category-II

Circular No. RBI/2023-24/13 A.P. (DIR Series) Circular No.01, dated 06.04.2023

The RBI has developed a software application, known as ‘APConnect’ for processing applications related to licencing of Full-Fledged Money Changers (FFMCs), non-bank Authorised Dealers (AD) Category-II, authorisation as Money Transfer Service Scheme (MTSS) Agent, renewal of existing licences/authorisations, and for seeking approval and submission of various statements/returns.

The ‘APConnect’ application broadly consists of the following facilities/functionalities:

(a) Registration and licensing of new companies as well as existing Authorised Persons (FFMC/non-bank AD Cat-II/NBFC eligible for AD Cat-II)

(b) Registration of new Branches

(c) Registration of temporary money changing facilities

(d) Registration of franchisees

(e) Authorisation as Indian Agents under MTSS

(f) Upgradation of FFMC to non-bank AD Cat-II

(g) Renewal of licences

(h) Opening of foreign currency accounts

(i) Opening of Nostro Accounts for eligible entities

(j) Voluntary surrender of licence

(k) Write-off of foreign currency notes

(l) Submission of returns/statements

In this regard, RBI has directed that existing FFMCs/non-bank AD Category-II must register themselves on the ‘APConnect’ application within a period of 3 months from the date of issue of this circular. The FFMCs and non-bank AD Cat-II must follow the instructions issued by the RBI.

Further, on receipt of confirmation from the Regional Office of the Reserve Bank regarding generation of licence through APConnect, the existing FFMCs/non-bank AD Cat-II must surrender their existing licence to the respective Regional Office of the Reserve Bank.

Also, RBI specifically mentioned that eligible entities, desirous of applying for fresh FFMC/non-bank AD Category II/MTSS Agent licence/authorisation must submit their application only through APConnect.

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