What changed
RBI allowed a single document to serve as both identity and address proof for MTSS customers if the address on the document matches the declared address. Previously, separate proofs were required. This applies to all Indian agents and their sub-agents under the Money Transfer Service Scheme.
What it means for you
Banks and authorized persons can now reduce documentation burden for customers receiving cross-border remittances under MTSS. This streamlines onboarding while maintaining AML/CFT compliance. Agents remain responsible for sub-agent adherence, so internal processes must be updated to verify address matches.
What you must do
- Update KYC procedures for MTSS inward remittances to accept a single document as both ID and address proof when addresses match.
- Train staff and sub-agents on the new rule: separate address proof required only if document address differs from declared address.
- Ensure sub-agents comply with these guidelines; monitor their KYC processes.
- Communicate this change to all relevant constituents and acknowledge receipt via Principal Officer.
Who it affects
Authorised Persons (Indian agents) under MTSS, Sub-agents of Indian agents under MTSS, Customers receiving cross-border inward remittances via MTSS
What if the customer's ID proof has a different address than their current address?
You must obtain a separate proof of address. The ID document alone cannot serve as address proof in that case.
Does this circular apply to sub-agents?
Yes, the guidelines apply mutatis mutandis to all sub-agents. Indian agents are responsible for ensuring sub-agent compliance.
Which legal provisions back this circular?
It is issued under FEMA 1999 (Sections 10(4) and 11(1)) and the PMLA 2002, as amended, along with related rules.