What changed
Previously, Authorised Persons (Indian Agents) under MTSS had to submit a half-yearly list of sub-agents to RBI's Foreign Exchange Department (Central Office). This requirement has been removed. Now, agents must report any addition or deletion of sub-agents immediately to the concerned Regional Office of FED and to the Forex Markets Division at Central Office. Agents are also required to verify the sub-agent list on RBI's website regularly and confirm its accuracy to FED CO within 15 days of each quarter-end.
What it means for you
This reduces administrative burden on Indian Agents by eliminating a periodic reporting requirement. However, it increases the onus on agents to maintain real-time accuracy of sub-agent data and proactively report changes. Banks and other agents must now ensure their internal systems can promptly notify RBI of any sub-agent appointments or removals, and they must schedule quarterly verification of the online list.
What you must do
- Stop submitting the half-yearly sub-agent list to FED Central Office; instead, report any sub-agent addition or deletion immediately to your regional FED office and to Forex Markets Division, FED CO.
- Visit the RBI website regularly to verify the published list of your sub-agents and report any discrepancies to the concerned FED RO and CO.
- Within 15 days of the end of each quarter, send a letter or email to FED CO confirming the accuracy of the sub-agent list on the RBI website.
Who it affects
Authorised Persons (Indian Agents) under Money Transfer Service Scheme, Banks and other entities acting as Indian Agents under MTSS, Sub-agents of MTSS
What is the new reporting requirement for sub-agent changes?
Instead of a half-yearly list, you must now inform the concerned Regional Office of FED and the Forex Markets Division at Central Office immediately whenever you appoint or remove a sub-agent.
How often must I verify the sub-agent list on RBI's website?
You should visit the RBI website at regular intervals to check the list. Additionally, you must confirm the list's accuracy to FED Central Office within 15 days of the end of each quarter.
What happens if I find an error in the online sub-agent list?
Any aberration should be brought immediately to the notice of the concerned FED Regional Office and FED Central Office.