1. Manappuram Achool of Training .

2. Manappuram Achool of Training .
Manappuram Finance Limited has been into FOREX business since The flag ship company Manappuram finance Ltd holds the authorized dealer, category 2(AD-2) license given by the Reserve bank of India(RBI),which authorizes an organization to do foreign exchange transactions. The companies having AD-2 license are permitted to do foreign currency purchase and sale. 61 MFL branches operating under Manappuram Finance Ltd are having license to do forex business. Foreign Exchange Management Act (FEMA) regulates the foreign exchange.
Manappuram Achool of Training

3. Manappuram Achool of Training .
CURRENCIES TRADED BY MANAPPURAM Among these 18 currencies, US Dollars, UAE Dirham and Saudi Riyal are the most traded by the company.
SL.NO
COUNTRY/UNION
CURRENCY
CODE
SYMBOL 1
United States
US DOLLAR
USD
$ or US$ 2
Australia
Australian Dollar
AUD
$ or AUD 3 UK
Pound Sterling
GBP 4
European Union
Euro
EUR € 5
State of Kuwait
Kuwaiti Dinar
KWD
د.ك 6
Kingdom of Saudi Arabia
Saudi Riyal
SAR
ر.س 7
State of Qatar
Qatari Riyal
QAR
QR or ر.ق 8
Sultanate of Oman
Omani Rial
OMR
ر.ع. 9
Kingdom of Bahrain
Bahraini Dinar
BHD
ب.د or BD
Manappuram Achool of Training

4. Manappuram Achool of Training .10
United Arab Emirates
UAE Dirham
AED
د.إ 11
Canada
Canadian Dollar
CAD
$ or C$ 12
Switzerland
Swiss Franc
CHF
CHF, Fr. 13
Singapore
Singapore Dollar
SGD S$ 14
Malaysia
Malaysian Ringgit
MYR RM 15
New Zealand
New Zealand Dollar
NZD $ 16
Hong Kong
Hong Kong Dollar
HKD
HK$ 17
Japan
Japanese Yen
JPY 18
Sweden
Swedish Kronor
SEK kr
Manappuram Achool of Training

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Meaning of FOREX
The foreign exchange market (Forex or FX) is a place where foreign currencies are traded. Trading includes both purchase and sales of foreign currencies. The Forex market is the largest financial market in the world and includes trading between large banks, central bank, currency speculators , multinational corporations, governments, and other financial markets and institutions.
Manappuram Achool of Training

6. KYC identification of Customers
Identification of customers through KYC norms.
All transaction should be undertaken only after proper identification of the customer.
Full details of name and address as well as the details of the identity document provided should also be kept on record.
As per KYC, full details of name and address and details of the identity should be collected before any transaction.
Manappuram Achool of Training

7. GUIDELINES FOR PURCHASE AND SALE OF FOREIGN CURRENCY
Reserve Bank of India instructions to Authorized money changers
Foreign Exchange in any from can be brought in to India freely. But it should be declared on the CDF (Currency Declaration form).
Foreign currency note exceeding USD 5000/- or its equivalent and travelers cheques exceeding USD 1000/- or its equivalent purchase must be provided CDF and endorse the particulars of transaction done with us. If the entire amount is encashed with us, the CDF need not be returned to the seller.
Manappuram Achool of Training

8. Purchase & Sales of Foreign currency…
If non residents are encashing traveler’s cheques, passport should be produced for verification.
We are allowed to sell Indian rupees to foreign tourists/ visitors against international credit cards and reimbursement is through banking channels.
5) Purchase of foreign currency notes and traveler's cheques from any authorized dealer (AD,FFMC,RMC) is allowed but the rupee equivalent is payable only by way of crossed cheque or demand draft.
Manappuram Achool of Training

9. Purchase & Sales of Foreign currency…
We are allowed to sell foreign currency notes or travelers cheques up to the prescribed ceiling (up to USD 3000/- or its equivalent) to eligible resident Indian citizens for undertaking private visits to any country except Nepal and Bhutan.
A declaration by the traveler regarding the amount of foreign exchange availed during the calendar year is required.
We are allowed to sell foreign currency notes/ travelers cheques for business travel or attending conference training etc.
Manappuram Achool of Training

10. Manappuram Achool of Training .
Purchase & Sales of Foreign currency…
We should issue an encashment certificate/ sale advice in the prescribed printed format, which is available in the forex system upon purchase/ sale of foreign currency .
Unspent rupees can be reconverted upon production of CDF from non residents.
Payments in excess of Rs 50,000/-towards foreign exchange through DD only.
10)Forex sale is performed only on personal application and identification .
Manappuram Achool of Training

11. SALE OF FOREIGN CURRENCY
In all cases of sale of foreign exchange, irrespective of the amount involved, for identification purpose copy of the valid passport of the customer should be insisted upon.
The sale of foreign currency should be made only on personal application and identification.
Type of sale
There are two types of sale
Personal Visit
Business Visit
Manappuram Achool of Training

12. Personal visit Public purchase & bulk purchase
Eligible categories
Resident Indian ,non resident Indian, foreign nationals permanently resident in India provided the applicant is not availing of facilities for remittance of salary, savings etc abroad in terms of the existing FEMA regulations.
Private travel:- Foreign exchange upto USD 10,000 in any calendar year can be allowed for tourism or private travel to any country other than Nepal and Bhutan on the basis of self-certification .
Manappuram Achool of Training

13. Manappuram Achool of Training .
Business visit
Eligible categories
Executives sponsored by firms/companies/ organization in India .
Journalists deputed on short term assignments aboard by news paper companies.
Self employed professionals like solicitors/CAs going on visit .
Participation of international conference/seminars of scientific/education or technological nature .
Professional specialized training/ study tour .
Business Traveller can avail of foreign exchange up to USD 25,000 for a Business Trip to any country other than Nepal and Bhutan on the basis of certification.
Manappuram Achool of Training

14. AD-II License (Authorized Dealer License)
In 2007 the Reserve bank of India authorized Manappuram Finance Limited as an authorized dealer-II to release foreign exchange for the following transaction (outward remittance).
Private Visits
Medical treatment abroad
Film Shooting
Higher Education in Overseas
Business travel
Remittance by tour Operators/Travel agent
Disbursement of crew wages
Manappuram Achool of Training

15. Manappuram Achool of Training .
Forex…
Emigration & Emigration consultancy fee
Employment and processing, assessment fees for overseas job application
Fee for participation in global conferences and specialized training
Processing fee for registration of documents
Visa fees
Manappuram Achool of Training

16. Anti money Laundering Guidelines
In any business besides profit there are chances for frauds also. In order to keep a check on such instances of frauds K Y C compliance is necessary in all the transactions. There are instances of fake notes being tendered in our branches. RBI has recently introduced certain guidelines to prevent money laundering activities.
The offence of money laundering has been defined in Section 3 of the Prevention of Money Laundering Act-2002 (PMLA), as whomsoever directly attempts to indulge or knowingly is a party or actually connected with the proceeds of crime and projecting it as untainted property shall be guilty of offence of money laundering. The purpose of prescribing anti money laundering guidelines is to prevent the system of AMCs engaged in the purchase and or sale of foreign currency notes /travelers cheque from being used for money laundering.
Manappuram Achool of Training

17. PURCHASE OF FOREIGN CURRENCY
Documents required
Encashment of travelers cheque .
Photocopy of valid passport.
Purchase of foreign currency less than USD 200 or its equivalent.
Full details of identification document with name & address.
Manappuram Achool of Training

18. Purchase of foreign currency…
Purchase of foreign currency between USD 200& USD 2000 or its equivalent .
Maintain the photocopy of identification document for one year and complete statutory audit.
Purchase of foreign currency in excess of USD 2000 or its equivalent .
Maintain the photocopy of identification document for a period of 5 years.
Purchase of foreign currency in excess of USD 5000 or its equivalent and travelers cheque in excess of USD or its equivalent .
Obtain Currency Declaration Form (CDF)
Manappuram Achool of Training

19. SALE OF FOREIGN CURRENCY
Documents required
Obtain copy of the valid passport of the customer. (Irrespective of the amount involved)
Manappuram Achool of Training

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TYPES OF SALE
There are two types of sale
1. Personal visit – Basic Travel Quota ( BTQ)
Eligibility
Resident Indians, Non resident Indians, foreign nationals permanently resident in India provided the applicant is not availing of facilities for remittance of salary, savings etc. abroad in terms of the existing FEMA regulations.
Manappuram Achool of Training

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…Type of Sale
Quantum of exchange
Up to a total of USD 10,000/- or its equivalent per person in a calendar year out of which maximum of USD 2,000/- or its equivalent in currency notes per visit and rest in travelers cheques for all the countries except for travel to Iraq, Iran, Libya, Russian Federation and other republics of common wealth of independent states.
Visit to those countries the total entitlement of USD 10,000/- or its equivalent per person in a calendar year can be released in the form of currency notes.
Traveler’s proceeding to Pakistan, Bangladesh or Myanmar by land route also eligible upto USD 10,000/- per person.
Manappuram Achool of Training

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…Type of Sale
2. Business visit
The following persons are eligible.
Executives sponsored by firms/ companies/ organizations in India.
Journalist deputed on short term assignments abroad by news paper companies.
Self employed professionals like solicitors/ CAs going on visit.
Participation in International Conferences/ seminars of scientific/ education or technical in nature.
Professional specialized training/study tour.
Manappuram Achool of Training

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Quantum of exchange
Up to USD 25000/- or it’s equivalent per business trip, irrespective of period of stay or number of times in a calendar year.
Manappuram Achool of Training

24. Target customer group for foreign exchange business
For strengthening the Forex business, the first step is to identify the prospective group of customers for getting maximum forex business. The target group includes
Duty paid shops
Hotels
Air travel enterprises
NRI customers
General public
Tourists
Tourists’ destination – it means branches, which are located in tourist places.
Manappuram Achool of Training

25. RECORDS MAINTAINED BY FOREX DEPARTMENT
Following are the records maintained regarding forex .
FLM Daily summary and balances of currency.
It contains the details of sale of currencies,
rate etc.
FLM Daily summary and balances of travelers
Cheques.
FLM Register of purchase of foreign currencies
from the public.
Manappuram Achool of Training

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Records Maintain…
FLM Register of sale of foreign currencies.
Inventory report – it is duly signed by both BH and ABH confirming the correctness of stock. If there is any difference it should be notified by the administrative office in writing on the same day.
FLM Summary statement of purchase and sale of
foreign currency to public during the
month. FLM-8 should be signed by both BH
and ABH.
Manappuram Achool of Training

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Records Maintain…
Last month’s closing stock should be the opening stock of the current month.
Closing balance should be tallied with inventory report ( rupee value and number of currencies)
Rupee value in inventory report should be tallied with the trial balance.
Upon purchase of foreign currencies the accounting entries are to be passed.
Manappuram Achool of Training

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Dotnet Procedure
Manappuram Achool of Training

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