Master Circular on Money Transfer Service Scheme
The Reserve Bank of India (RBI) has issued a master circular on the Money Transfer Service Scheme (MTSS), outlining guidelines for permitting/authorizing Indian agents under the scheme.
Statutory Basis: The MTSS is based on the Reserve Bank of India Act, 1934, and the Foreign Exchange Management Act, 1999.
Guidelines:
Indian agents seeking authorization under the MTSS must meet certain entry norms, including:
- Owned Funds: Paid-up Equity Capital + Free reserves + Credit balance in Profit & Loss A/c minus Accumulated balance of loss, Deferred revenue expenditure, and Other intangible assets.
- Net Owned Funds: Owned funds minus investments in shares of subsidiaries, companies in the same group, and other non-banking financial companies, as well as the book value of debentures, bonds, outstanding loans, and advances made to and deposits with subsidiaries and companies in the same group.
The circular outlines various sections, including guidelines for Indian agents, entry norms, and other requirements for operating under the MTSS.
Chat with the Master Circular: