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 Indian agents under the scheme.
Statutory Basis: The circular is based on the statutory provisions of the Reserve Bank of India Act, 1934, and the Foreign Exchange Management Act, 1999.
Guidelines:
Indian agents seeking authorization under MTSS must meet certain entry norms, including:
- Owned Funds: 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.
- Net Owned Funds: Owned funds minus investments in subsidiaries, companies in the same group, non-banking financial companies, and book value of debentures, bonds, outstanding loans, and advances made to and deposits with subsidiaries and companies in the same group.
The circular also outlines other guidelines and requirements for Indian agents, including net worth, capital adequacy, and regulatory compliance.
Objective: The objective of the MTSS is to facilitate smooth transfer of funds from abroad to India, while ensuring compliance with regulatory requirements and preventing money laundering and terrorist financing.
Chat with the Master Circular: