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KYC Relaxation for MTSS Cross-Border Remittances

Current · Source: Reserve Bank of India · RBI/2012-13/362 · issued 02 Jan 2013 · ~1 min read
Quick answerRBI eases KYC for MTSS inward remittances: if the ID proof document shows the same address as declared, it serves as both identity and address proof. Separate address proof is needed only if addresses differ. Agents must ensure sub-agents comply.
The rule, in the simplest words
How it plays out — a real example

A KYC & compliance officer in Indore receives a customer who wants to collect a remittance from abroad. The customer shows her Aadhaar card, and the address on it matches the address she wrote on the form. The officer happily accepts it as both ID and address proof, saving the customer from bringing an extra electricity bill.

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

Who it affects

Authorised Persons (Indian agents) under MTSS, Sub-agents of Indian agents under MTSS, Customers receiving cross-border inward remittances via MTSS

❓ Common questions

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.

📜 Read the original circular — full text as issued by RBI
RBI/2012-13/362 A. P. (DIR Series) Circular No. 67 January 2, 2013 To, All Authorised Persons, who are Indian agents under Money Transfer Service Scheme Madam / Sir, Know Your Customer (KYC) norms/Anti-Money Laundering (AML) standards/Combating the Financing of Terrorism (CFT)/Obligation of Authorised Persons under Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009- Cross Border Inward Remittance under Money Transfer Service Scheme Please refer to Annex-II to the A.P. (Dir Series) Circular No. 18 [A.P. (FL/RL Series) Circular No. 05] dated November 27, 2009, as amended from time to time. 2. In order to ease the burden on the prospective customers in complying with KYC requirements for doing money transfer activities under the Money Transfer Service Scheme, it has now been decided that: If the address on the document submitted for identity proof by the prospective customer is same as that declared by him/her, the document may be accepted as a valid proof of both identity and address. If the address indicated on the document submitted for identity proof differs from the current address declared by the customer, a separate proof of address should be obtained. 3. All the other instructions contained in the A.P. (DIR Series) Circular No. 18 [A.P. (FL/RL Series) Circular No. 05] dated November 27, 2009, as amended from time to time shall remain unchanged. 4. These guidelines would also be applicable mutatis mutandis to all Sub-Agents of the Indian Agents under MTSS and it will be the sole responsibility of the APs (Indian Agents) to ensure that their Sub-agents also adhere to these guidelines. 5. Authorised Persons (Indian Agents) may bring the contents of this circular to the notice of their constituents concerned. 6. Please advise your Principal Officer to acknowledge receipt of this circular letter. 7. The directions contained in this Circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and also under the, Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009 and Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005 as amended from time to time and are without prejudice to permission/approvals, if any, required under any other law. Yours faithfully, (Rudra Narayan Kar) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/362 · issued 02 Jan 2013. The plain-English explanation above is BankPulse’s own independent summary.
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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (Authorised Persons (Indian agents) under MTSS, Sub-agents of Indian agents under MTSS, Customers receiving cross-border inward remittances via MTSS), your first concrete step on “KYC Relaxation for MTSS Cross-Border Remittances” is: “Update KYC procedures for MTSS inward remittances to accept a single document as both ID and address proof when addresses match.” (RBI issued this 02 Jan 2013).

  1. Circular: RBI/2012-13/362 -- KYC Relaxation for MTSS Cross-Border Remittances
  2. Issued: 02 Jan 2013
  3. Action required: Update KYC procedures for MTSS inward remittances to accept a single document as both ID and address proof when addresses match.
  4. Action required: Train staff and sub-agents on the new rule: separate address proof required only if document address differs from declared address.
  5. Action required: Ensure sub-agents comply with these guidelines; monitor their KYC processes.
  6. Action required: Communicate this change to all relevant constituents and acknowledge receipt via Principal Officer.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=7789&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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