Guidelines for Indian Agents under Money Transfer Service Scheme (MTSS)
The Reserve Bank of India (RBI) has issued guidelines for permitting Indian agents under the Money Transfer Service Scheme (MTSS).
Statutory Basis: The guidelines are based on the statutory provisions of the Reserve Bank of India Act, 1934, and the Foreign Exchange Management Act, 1999.
Entry Norms: To be eligible, Indian agents must meet certain entry norms, including:
(i) Owned Funds: The agent must have a minimum owned funds requirement, calculated as paid-up equity capital, free reserves, and credit balance in the profit and loss account, minus accumulated losses, deferred revenue expenditure, and other intangible assets.
(ii) Net Owned Funds: The agent’s net owned funds must be calculated by deducting investments in subsidiaries, non-banking financial companies, and other specified assets from the owned funds.
Procedure for Making Applications: The application process involves submitting a formal application to the RBI, along with required documents and information.
The RBI will review the application and may grant authorization to the Indian agent to operate under the MTSS.
Chat with the Master Circular: