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Master Circular on Money Changing Activities (2011-12)

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2011-12/376 · issued 09 Feb 2012 · ~1 min read

Quick answerRBI consolidated all instructions on money changing into one Master Circular, effective July 1, 2011, with a sunset clause withdrawing it on July 1, 2012. It covers licensing, KYC/AML norms, and franchisee rules for Authorised Money Changers.

What changed

RBI issued Master Circular No.13/2011-12 to consolidate all existing instructions on money changing activities into a single document. The circular includes a sunset clause, meaning it will be withdrawn on July 1, 2012, and replaced by an updated version.

What it means for you

Banks and money changers now have a single reference point for all rules on licensing, branch approvals, franchisee appointments, and KYC/AML compliance for money changing. The sunset clause ensures the circular is temporary, requiring entities to stay alert for the updated version in 2012.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Review the consolidated instructions in this Master Circular for all money changing operations.
Ensure compliance with KYC/AML/CFT guidelines as detailed in Annex-I.
Prepare for the sunset clause by tracking the upcoming updated Master Circular expected by July 1, 2012.
Verify that all franchisee appointments adhere to the restrictions on foreign currency sales near Pakistan and Bangladesh borders.

Who it affects

Authorised Dealer Category-I Banks, Authorised Dealer Category-II, Full Fledged Money Changers (FFMCs), Franchisees of ADs and FFMCs

❓ Common questions

Regulatory timeline

Stated effective date effective July 1, 2011
Decoded by BankPulse 2026-06-18 21:56 IST
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the sunset clause in this Master Circular?

The circular will stand withdrawn on July 1, 2012, and will be replaced by an updated Master Circular on the same subject.

Can franchisees sell foreign currency?

Generally, franchisees cannot sell foreign currency, except those within 10 km of Pakistan or Bangladesh borders, which may sell the bordering country's currency with prior RBI approval.

What are the entry norms for an FFMC licence?

The applicant must be a company registered under the Companies Act, 1956, and meet the minimum Net Owned Funds (NOF) requirement as specified in the circular.

📜 Read the original circular — full text as issued by RBI

A.   Opening balance 
        Purchases of foreign currency notes from
       (a)  Public
       (b)  RMCs/FFMCs/ADs including imports.
       (c)  Agents/Franchisees
 B.   Total Purchases (a) + (b) + (c) 
        Sales of foreign currency notes under( with purpose codes)
 (i) BTQ /(ii) Private Visits (S0302)
 (i) Business Visits/(ii)  Business Travel (S0301)
 Remittance by tour operators / travel agents to overseas agents / principals / hotels( S0306)
  Film shooting(S1101)
 Medical Treatment abroad(S0304)
 Disbursement of crew wages(S1401)
 Overseas Education(S0305)
 (i) Fee for participation in global conferences and specialized training / (ii) Remittance for participation in international events / competitions (towards training, sponsorship and prize money)/ (iii) Remittance under educational tie up arrangements with universities abroad/(iv) Remittance towards fees for examinations held in India and abroad and additional score sheets for GRE, TOEFL etc./ (v) Employment and processing, assessment fees for overseas job applications/(vi) Skills / credential assessment fees for intending migrants/(vii) Visa fees /(viii) Processing fees for registration of documents as required by the Portuguese / other Governments/ (ix) Registration / Subscription / Membership fees to International Organizations (S1102) 
 Emigration Fees (S1202) 
 Emigration Consultancy Fees (S1006)
 Sales to other FFMCs/ADs including    exports
 C.   Total Sales [ (a) + (b) + (c) + (d) + (e) + (f) + (g) + (h )+ (i) + (j)+ (k) ]
       Closing balance (A+B - C)

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/376 · issued 09 Feb 2012. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6977&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.