What changed
The RBI has raised the annual limit on the number of inward cross-border remittances a single beneficiary can receive under MTSS from 12 to 30 per calendar year. This change was made via A. P. (DIR Series) Circular No. 132 dated June 8, 2012, amending the June 4, 2003 MTSS notification. All other existing MTSS instructions remain unchanged.
What it means for you
Indian Agents and their Sub Agents can now process up to 30 remittances per year for a single beneficiary, doubling the previous cap. This eases compliance for banks and money transfer operators handling frequent small-value inward flows. However, Agents remain fully responsible for ensuring Sub Agents adhere to all MTSS guidelines.
What you must do
- Update internal systems and processes to reflect the new limit of 30 remittances per beneficiary per calendar year.
- Communicate the revised cap to all Sub Agents and ensure they comply with the updated instructions.
- Continue to monitor and report MTSS transactions as per existing FEMA and RBI guidelines.
- Retain records of beneficiary-wise remittance counts to avoid exceeding the new annual limit.
Who it affects
Authorised Persons (Indian Agents) under MTSS, Sub Agents of Indian Agents, Individual beneficiaries receiving inward remittances via MTSS, Overseas Principals with tie-up arrangements
Does this circular change any other MTSS rules?
No. Only the annual remittance limit per beneficiary has been increased from 12 to 30. All other instructions in the June 4, 2003 MTSS notification remain unchanged.
Are Sub Agents automatically covered by this change?
Yes. The circular states that the new limit applies mutatis mutandis to Sub Agents. Indian Agents must ensure their Sub Agents follow the updated cap.
What is the legal basis for this circular?
It has been issued under Sections 10(4) and 11(1) of FEMA, 1999, and does not override any other permissions or approvals required under other laws.