RBI Issues Revised Guidelines for Money Transfer Service Scheme

[Ref: A.P. (DIR Series) Circular No. 89 dated March 12, 2013]

Subject: Money Transfer Service Scheme – Revised Guidelines

Attention of all Authorised Persons (APs), who are Indian Agents under the Money Transfer Service Scheme (MTSS) is invited to the Notification dated June 4, 2003 on MTSS, as amended from time to time and the specific permission accorded to them under FEMA, 1999 by the Reserve Bank to undertake inward cross-border money transfer activities in India, through tie-up arrangements with Overseas Principals.

2. The MTSS Guidelines have been revised in consultation with the Government of India and the revised MTSS Guidelines are in the Annex-I.

3. All other instructions issued vide the said Notification ibid, as amended from time to time remain unchanged.

4. These guidelines would also be applicable mutatis mutandis to all Sub Agents of the Indian Agents under MTSS and it will be the sole responsibility of the APs (Indian Agents) to ensure that their Sub Agents also adhere to these guidelines.

5. Authorised Persons (Indian Agents) may bring the contents of this circular to the notice of their constituents concerned.

6. The directions contained in this Circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals if any, required under any other law.

[The Guidelines run into 38 pages. Please see our website www.worldtradescanner.com for details]