What changed
This Master Circular consolidates all existing MTSS instructions into one document with a sunset clause of one year. It reiterates that only inward personal remittances (family maintenance, foreign tourist payments) are allowed under MTSS. No outward remittances from India are permitted.
What it means for you
Banks and authorized entities must ensure strict compliance with MTSS rules, focusing only on inward remittances. The circular clarifies that Indian Agents cannot remit any amount to Overseas Principals. It reinforces KYC/AML/CFT guidelines for agents and sub-agents.
What you must do
- Ensure your entity is an Authorised Dealer Category-I, II, or Full Fledged Money Changer before applying as an Indian Agent.
- Submit applications to Chief General Manager-in-Charge, Forex Markets Division, RBI with required documents (audited accounts, undertaking, volume estimates).
- Comply strictly with KYC/AML/CFT guidelines for all MTSS transactions.
- Do not process any outward remittances under MTSS; only inward personal remittances are allowed.
- Prepare for renewal or updated circular after July 1, 2013, as this circular has a sunset clause.
Who it affects
Authorised Dealer Category-I banks, Authorised Dealer Category-II institutions, Full Fledged Money Changers (FFMCs), Overseas Principals (money transfer companies), Sub-Agents appointed by Indian Agents
Who can apply to become an Indian Agent under MTSS?
Only Authorised Dealer Category-I banks, Authorised Dealer Category-II, or Full Fledged Money Changers (FFMCs) can apply to RBI for permission.