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Master Circular on Money Transfer Service Scheme (MTSS)

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2013-14/1 · issued 27 Jun 2014 · ~2 min read

Quick answerRBI's Master Circular on MTSS allows only inward personal remittances to India via authorised Indian Agents, with no outward remittances permitted. It consolidates guidelines for agents, overseas principals, KYC/AML norms, and reporting, effective until July 1, 2014.

What changed

This Master Circular consolidates all existing MTSS guidelines into a single reference document, replacing earlier circulars. It includes updated KYC/AML/CFT guidelines and a sunset clause, expiring on July 1, 2014, after which a new circular will be issued.

What it means for you

Banks and authorised persons must ensure only inward personal remittances (e.g., family maintenance, tourist funds) are processed under MTSS, with no outward flows. The circular reinforces strict KYC/AML compliance and periodic reporting, impacting operational processes for Indian Agents and sub-agents.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Review and align MTSS operations with the consolidated guidelines, especially KYC/AML/CFT norms.
Ensure no outward remittances are processed under MTSS; only inward personal remittances are allowed.
Submit quarterly statements on remittance volumes and collateral details as per Annex III and IV.
Verify that all Indian Agents are RBI-authorised and meet entry norms (AD-I, AD-II, or FFMC).
Prepare for the sunset clause by planning for the updated circular due July 1, 2014.

Who it affects

Authorised Dealer Category-I banks, Authorised Dealer Category-II entities, Full Fledged Money Changers (FFMCs), Indian Agents under MTSS, Overseas Principals, Sub-agents of Indian Agents

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 14:59 IST
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What types of remittances are allowed under MTSS?

Only inward personal remittances, such as family maintenance and funds for foreign tourists visiting India. Outward remittances from India are strictly prohibited.

Who can become an Indian Agent under MTSS?

Only Authorised Dealer Category-I banks, Authorised Dealer Category-II entities, or Full Fledged Money Changers (FFMCs) as defined in the circular can apply for permission.

What is the sunset clause in this circular?

The circular has a sunset clause of one year, meaning it will stand withdrawn on July 1, 2014, and be replaced by an updated Master Circular on MTSS.

📜 Read the original circular — full text as issued by RBI

RBI/2013-14/1
 Master Circular No.1 /2013-14
 (As updated on June 27, 2014)
 July 01, 2013
 To
 All Authorised Persons, who are Indian Agents under
 the Money Transfer Service Scheme
 Madam / Sir,
 Master Circular on Money Transfer Service Scheme
 Money Transfer Service Scheme (MTSS) is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India. Only inward personal remittances into India such as remittances towards family maintenance and remittances favouring foreign tourists visiting India are permissible. No outward remittance from India is permissible under MTSS.
 2. This Master Circular may be referred to for general guidance. The Authorised Persons may refer to respective circulars / notifications for detailed information, if so needed.
 3. This Master Circular is being issued with a sunset clause of one year. This circular will stand withdrawn on July 1, 2014 and will be replaced by an updated Master Circular on the subject.
 Yours faithfully,
 (B. P. Kanungo)
 Principal Chief General Manager
 INDEX

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/1 · issued 27 Jun 2014. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8093&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.