Indian Agent Registration under Money Transfer Service Scheme

The most straightforward method of cash remittance in India is through the Money Transfer Service Scheme. If you’re in doubt with regards to how to send cash from abroad to India through the Money Transfer Service Scheme then, at that point, you are at the right place to learn and understand.

Understand MTSS (Money Transfer Service Scheme)

MTSS (Money Transfer Service Scheme) is one of the most helpful options with the end goal of inward remittance of cash from abroad to India. The services provided under this plan can be used by the travellers coming to India. By utilizing MTSS services, money can be moved to India. In any case, under MTSS, no outward remittance is allowed. Just Inward remittance in India is permitted. Under this, remittance should be possible in a rapid and free way.

Why has the idea of MTSS (Money Transfer Service Scheme) been presented?

The idea of MTSS (Money Transfer Service Scheme) has been introduced as inward remittances furnishing the national income of India just as it is the greatest wellspring of external financing. With the assistance of MTSS, cross-line inward remittances can be availed by individuals through banking and postal channels. Nonetheless, the most well-known postal channel which has been utilized for this object is the International Financial System (IFS) foundation of Universal Post Union (UPU). Normally, banks are allowed to go into concurrences with different banks for the remittance business.

Two modes to receive inward remittance

Rupee Drawing Arrangement (RDA)
Cash Transfer Service Scheme (MTSS)

How Rupee Drawing Arrangement (RDA) is different from Money Transfer Service Scheme (MTSS)

Rupee Drawing Arrangement (RDA) is a kind of strategy through which cash can be availed from abroad as remittance. RDA is simply restricted to people though for trade reasons money can be moved up to a specific mark through RDA. Through these methods, just certain Authorized Dealer-I classified banks are allowed to execute. With the end goal of trade under RDA, approved trade houses having their agent in a foreign country are utilized by the approved banks which are permitted by RBI. Remitted money is moved to the receiver’s bank account while no remittance in cash is allowed. Under RDA, there is no restriction on the exchange of money to an individual’s account. For the trade reason, there is a maximum of INR 5 lakhs allowed on money transfer. There is no arrangement of cash remittance under RDA.

These two are marginally not the same in RBI’s view point.

Money transfer services outside India facilitate inward remittance through MTSS, by working with agents who are authorized to do so, in India. Money can’t be moved through this way for exchange or charity donations.

There are limits prescribed for inward remittance through MTSS which are covered at USD 2,500 per exchange alongside this, at most extreme 30 exchanges can be received by a single beneficiary in one year.

Under MTSS; cash remittance is allowed. At present, for cash remittance, there is a constraint of INR 50000 and in the event of sum more than this; it will be paid through check, request draft, and so on. While in the event of foreign tourists involved more than Rs. 50000 is permitted in cash by means of MTSS.

Who can be authorized to commence the business of money transfer to India?

Under the MMTS (Money Transfer Service Scheme), the Reserve Bank of India might give authorization to any individual to go about as an Indian Agent according to Section 10(1) of the Foreign Exchange Management Act (FEMA), 1999. Except if the Reserve Bank of India has granted authorization, no individual can deal with the matter of cross-border money trade to India.

To turn into an Indian agent, a candidate should be either Authorized Dealer Category-I or category-II bank or a Full-Fledged Money Changer (FFMC), or a Scheduled Commercial Bank either the Department of Posts.

What is the fundamental requirement for Indian Agent Registration?

For the candidate, it is mandatory to have minimum Net Owned Funds of INR 50 lakhs.

Process to file an application to go about as an Indian Agent with the RBI

To go about as an Indian agent, an application is needed to be documented with the Reserve Bank of India (Foreign Exchange Department) under whose purview the registered office of the candidate is arranged.

Following documents are needed to be filed

The affirmation is needed to be submitted with respect to no procedures have been started or forthcoming against the Applicant and its Director, in the presence of Directorate of Enforcement/Directorate of Revenue Intelligence or some other law implementing authorities.
An affirmation in regards to the appropriate policy framework has been outlined in regard to KYC/AML/CFT as per the rules prescribed by Reserve Bank of India.
Details like the name and address of the registered entity (Overseas Principal) with whom the Indian Agent will go into an agreement under MTSS.
By the Overseas Principal, complete details of the activity of the plan.
Details of branches in India where MTSS will be led by the candidate.
Under the plan, the assessed volume of business each month/year.
Evaluated budget summaries of the candidate throughout the previous two years, if accessible else duplicate of the most recent examined accounts alongside an affirmed duplicate of Net Owned Funds from the legal evaluator as on date of Application.
Duplicate of Memorandum and Articles of Association of the candidate where there is a provision with respect to the money transfer business or make proper amendments needed.
Confidential Report in a sealed envelope from at least two of the candidate’s bankers.
Details of association concerned with the candidate working in the financial sector.
A certified duplicate of the board’s resolution by the candidate in regards to the fund transfer business.
A letter from the proposed Overseas Principal who consents to go into an agreement with the candidate and furthermore to give mandatory collateral.

Guidelines for Overseas Principal

Following documents are needed to be presented by the candidate Indian agent, in regard of their Overseas Principals:

It is needed to acquire earlier authorization from the Department of Payment and Remittance Systems, Reserve Bank of India under the provisions of the Payment and Remittance Systems Act (PSS Act), 2007 to function as a payment framework by the Overseas Principal.
The overseas principal ought to be an entity registered with the Central Bank/Government or financial regulatory authority concerned for commencing Money Transfer Activities.
There ought to be a minimum Net-Worth of US $ 1 million of the registered entity
The Apex Bank might loosen up the base criteria of Net Worth measure in cases where Overseas Principals are joined in FATF member nations directed by the public authority.
The Overseas Principal ought to be grounded in the fund transfer business with a history of tasks in appropriately regulated markets.
The course of action with Overseas Principal should bring about impressively expanding access/passage to formal (legal) fund transfer facilities at the two ends. It implies the two nations ought to be profited from this sort of plan.
They ought to be registered with the foreign trade/Industry bodies.
They ought to have acquired a decent rating from one of the global credit score organizations.
A confidential report must be submitted from a minimum of two of its bankers.
A certified report ought to be presented by autonomous independent Chartered Accountants, regarding the matter of initiation to consent to anti-money laundering standards in the native/host country.
It will be the full liability of the overseas principal in regards to the exercises of their Agents and Sub Agents in India.

Oversees Principals need to keep up with legitimate records of remitters as likewise recipients relating to all compensation paid in India. On request to the Reserve Bank or different offices of the Government of India, Ministry of Finance, Ministry of Home Affairs, FIU-IND, and so forth, documents and full details of the parties ought to be available.

Process of sending money to India through MTSS (Money Transfer Service Scheme)

The method involved in sending money to India through MTSS is very basic, which incorporates the accompanying-

For the money remittance, remitter needs to visit area where Money Gram or Western Union Money Transfer outlet is situated in such nation where the service is offered. Then, at that point, the structure is needed to be loaded up with the expenses as needed alongside the extra charges applicable. After this, a one of a kind MTCN (Money Transfer Control Number) will be generated by the framework which is considered as the Reference Number.
The remitter needs to intimate the payee with respect to the deposits. After this, Payee needs to visit the Post Office to fill the essential form and to show ID documents for confirmation.
From there on MTCN is needed to be given to an official who checks from the transaction record.

After confirmation, money is conveyed to the payee in Indian currency. Per transaction, remittance of up to 2500 USD is allowed according to the RBI rules which can’t be overruled. Simply up to the sum 50,000 INR can be paid in cash over this, the sum can be straightforwardly saved in the account or a cheque for the sake of the recipient.

The course of money remittance to India scarcely involves a lot of time. Disregarding the fact that there is a restriction of maximum 30 exchanges yearly, heaps of individuals are taking advantage of this.

We enthusiastically suggest individuals ought to apply for this amazing opportunity to be an Indian agent and take the authorization of the concerned authority and dispense money to recipients in India at progressing trade rates.

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